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V. Rishi Kumar

Hyderabad, Aug 11 Shortage of equipment suppliers, spiralling fuel prices and rising input costs are among the key areas of concern with the potential to impact the projected capacity addition in the country’s power sector, according to Mr T. Shankaralingam, former Chairman and Managing Director of NTPC and now Chairman of East Coast Energy.

Speaking to Business Line here recently, Mr Shankaralingam said there is huge demand for equipment suppliers and the capacity addition during the Eleventh Plan period is directly linked to the ability to meet such supplies. However, apart from BHEL, more companies such as L&T and Bharat Forge have either already forayed or are evincing interest in equipment manufacture.

“The entry of new players is good for India as this will have a direct bearing on the projected capacity addition of about 75,000 MW during the 11th Plan period. We may achieve about 80 per cent and may even stretch up to 100 per cent if most plants, now under implementation, manage equipment supplies,” he said.

“Many believe that Chinese companies would be able to bridge the equipment supply demand in India. Contrary to this belief, Chinese companies too have huge commitments locally and to markets outside. They would be able to supply only after they meet their existing order books,” he said.

After the experiences faced in the last decade with the gas-based projects and shortage of fuel on one side and the volatile nature of gas prices on the other, most developers are looking at coal as fuel — be it domestic or imported coal, he said.

The choice of coal seems to be more appropriate given the relative stable pricing, he said.

More Stories on : Electrical Goods | Power

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