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| Edited By: Neeraj Thakur |Source: DNA |Updated: Mar 17, 2018, 02:42 AM IST
State run power equipment maker Bharat Heavy Electricals Ltd (Bhel) has claimed the sub-critical power equipment manufactured by it can match the coal usage efficiency of super-critical power equipment being promoted by the government to control carbon emissions and enhance the productivity of Indian power plants.
Serious lobbying by domestic power equipment makers is underway to stop the government from promoting super-critical technology in India. The companies are believed to be fearing competition from foreign players, who possess better technology.
“Our 660 mw sub-critical power plants have the same efficiency (in producing heat from coal) as that of super-critical power plants.
We have written to the Central Electricity Authority to consider the quality of our sub-critical power plants,” Bhel chairman and managing director B Prasada Rao said on Thursday.
Prasada Rao was replying to a question on the government’s policy to promote super-critical power plants, in an analyst’s call after the company reported a 36% increase in its net profit for the quarter ended December 31, 2009.
The government has formulated a policy that mandates 60% of new power plants in the 12th Plan and 100% of new plants in the 13th Plan to be based on super-critical technology.
The new policy would have serious implications for Bhel. While the company enjoys a near-monopoly in the domestic sub-critical power equipment market, it will have to face tough competition from private players like JSW, L&T, GE and Bharat Forge in the area of super-critical plants.
DNA spoke to three industry experts all of who disagree with the claim made by Bhel. “A sub-critical power equipment plant cannot match the fuel-usage efficiency of a super-critical power equipment plant. The government should not believe in the claim unless substantial proof is provided by the company,” said a senior analyst who did not want to be quoted.
Super-critical equipment is about 10-15% more efficient than sub-critical equipment.
Bhel has been lobbying hard with the government to twist the policies of the power sector in its favour.
Recently, an empowered group of ministers decided that all future ultra mega power projects (UMPPs) should source power equipment from domestic players. The decision is seen as serious impediment in promoting competition in the market as Chinese companies like Shanghai Electric Group, Dongfang Electric Corp and Harbin Power Equipment would not be able to supply their super-critical plants to the power producers.
“I do not know if the Central Electricity Authority will agree with Bhel on the issue, but the government should not nurture Bhel by distorting rules in favour of the PSU,” said an analyst with a Mumbai-based brokerage firm who attended the conference call of Bhel’s third quarter results.
