Apr 29, 2007

BHEL overburdened, push NTPC foray in manufacturing

Blaming an "overburdened" BHEL for the failure to meet 10th plan capacity addition targets in the power sector, a parliamentary panel has asked Power Ministry to expedite state-run generation giant NTPC Ltd's foray into the equipment manufacturing business.

"About 53 per cent of capacity addition target (of 10th plan) has slipped to 11th plan. Out of this, major slippage has been due to delay in supercritical technology and supply of equipment by BHEL," the Standing Committee on Energy said in its report for 2006-07 tabled in Parliament.

"Since BHEL is the sole supplier of equipment, it seemed to be overburdened with work," it said, adding the government should select other suppliers as well through the competitive bidding route to ensure that 11th plan targets were met.

In 10th Plan, the Centre, states and private firms added around 21,180 MW of capacity compared to the target of around 41,110 MW. During 2007-12, the power ministry has set a target of adding 78,000 MW of fresh generation capacity.


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