Home Economy BHEL can now supply bigger power generation equipment

BHEL can now supply bigger power generation equipment

By IANS

New Delhi : State-owned power equipment firm Bharat Heavy Electricals Ltd (BHEL), an established supplier of 500-MW boilers and turbines, can now bid for 600-MW units with approval from the Central Electricity Authority (CEA).

The CEA has advised power utilities to consider BHEL as a qualified bidder for supplying 600-MW main plant package, provided it meets some additional conditions including extended warranty of one year.

“BHEL, the sole manufacturer of 500-MW unit size, has now proposed to offer 600-MW sized units as well and has requested to be qualified on the strength of their experience for 500-MW units. BHEL made a presentation to CEA in this regard wherein some power utilities were also present,” CEA wrote to power utilities recently.

“BHEL’s proposal has been examined and keeping in view the long proven performance of 500-MW thermal units designed, manufactured and supplied by BHEL, it is advised that BHEL may be considered as qualified bidder for 600-MW unit size,” the letter says, urging utilities to take this into account while stipulating qualifying requirements for procurement of key equipment for their power projects.

“BHEL was constrained in competing against other suppliers of 600-MW unit size due to restriction placed on it by CEA,” say industry experts.

In representations made earlier, BHEL had tried to persuade CEA to grant its recommendation by arguing that manufacturing 600-MW boilers and turbines was just a matter of up-scaling from 500-MW units and did not require any technological innovation.

The company had told CEA that it could use the same technology platform for manufacturing 600-MW boilers and turbines as it did for 500-MW units, BHEL sources said.