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Govt cautious on Chinese power equipment performance

Our Bureau

New Delhi, April 19 With the prospect of close to 20,000 MW of new generation capacity likely to be set up in the country using Chinese equipment, the Government is toeing a cautious line on the issue of the unproven technical capabilities of Chinese equipment in dealing with the high-ash Indian coal.

The overall performance of Chinese machines — with specific references to the plant load factor of projects using these equipment — is also likely to be looked at, even as a bevy of Indian power project developers are making a beeline for Chinese equipment for tapping the cost advantage.

“Chinese technology is still unproven in India. Apprehensions have been raised regarding the technical capability of Chinese power equipment in handling the high-ash content Indian coal. Also, reports of low PLF for projects using Chinese equipment have surfaced. We are looking into this,” a senior Government official said.

Over 15 utilities across the country have placed orders with Chinese equipment manufacturers such as Dongfang Electric Corporation, Shanghai Electric (Group) Corporation (SEC), Sichuan Machinery and Equipment Corporation (SCMEC) and Shandong Electric Power Construction Corporation (SEPCO).

According to fresh assessments made by the Government, an estimated 18,000-20,000 MW of new generation capacity in the country is likely to be set up using Chinese equipment between now and 2020.

Contract conditions

The Government has already firmed up plans, under which it will insist on domestic manufacturing as a yardstick for Chinese equipment suppliers bagging contracts for future power projects in India. The Prime Minister’s approval is expected shortly on the proposal.

The move comes at a time when dumping charges have been levelled by state-owned equipment major Bharat Heavy Electricals Ltd (BHEL) against Chinese companies to grab equipment supply contracts for mega power projects.

In terms of performance, BHEL officials maintain that its equipment were much better than the competitors, referring to independent studies that establish that the plant load factor of BHEL projects was 90 per cent while it was 60 per cent in the case of those using Chinese equipment.

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