Delay in power plant? Blame BHEL

Power companies Neyveli Lignite Corporation and National Thermal Power Corporation have blamed Bhel for delay in power projects in at least two separate cases, according to Business Standard.

Business Standard reports NLC's latest project to add 1,500 mega watt of power to the grid in Tamil Nadu which is suffering from power shortage, could not be completed as Bhel did not deliver equipments on time.

Even NTPC along with other state governments like that of Rajasthan has complained about the same things, Business Standard says. A recent report quoted the Central Electricity Authority as saying, "BHEL has failed to meet the deadline in nine of the 17 thermal projects that were to be commissioned last financial year."

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There are many such projects that have allegedly faced delays due to Bhel, including a 2x800-Mw super critical project at Udangudi, 1,000-Mw thermal power project at Tuticorin, and a Rs 5,000 crore project at Vallur.

According to the 11th Plan working group report, 14 percent of the planned capacity was missed because of BHEL's failure to provide equipments.

But Bhel does not accept these charges. Business Standard quotes a senior official from Bhel who says, "People are giving you a wrong impression. BHEL's scope in any of these power projects is only 45-50 percent. We cannot be blamed . We are responsible for boiler turbines while the balance of plant (BoP) is handled by others."

However, if execution of orders remain an issue with Bhel, it will of course create better opportunities for Chinese players and other Indian players like L&T.