Toshiba JSW Turbine &
Generator Pvt. Ltd
represents the coming
together of the Toshiba
Group of Japan and Indian
steel JSW Group. The joint
venture recently opened its
new manufacturing facility
for manufacture of high
efficiency steam turbines
and generators for power
plants. In an exclusive
interaction,
Yoshiaki
Inayama discusses the
supercritical power
equipment market in India
and how the JV hopes
to bring in Toshiba's
technical expertise and
reliability. An interview by
Venugopal Pillai.
Given that India is most likely to
continue its reliance on coalfired
power plants, how do you
see the market for supercritical
power equipment in India?
More than 80 per cent of the
power plants planned in the 12th
Five-Year Plan are thermal, and
among them 60 per cent are
supercritical thermal power
plants. Moreover, almost all the
power plants in the 13th Five-Year
Plan will be planned based on
supercritical technology. In order
to keep the momentum of rapid
economic and industrial growth of
India, continuous capacity addition
in power sector is imminent.
The government has realised the
same and has aggressive capacity
addition plans in the tune of
15,000 MW per year for the next
decade or so. Toshiba Group, with
its strong local presence, sees a
very good business avenue in
India.
Tell us about the total investment
made so far by the two partners
Toshiba and JSW in the joint venture.
What would be the fund
infusion in the coming years?
The total amount of investment is
about
800 crore so far by both the
partners in the JV. We have
planned to increase the manufacturing
capacity from 3,000 MW to
6,000 MW in FY15.
What would be the general lead
time for an 800-MW TG set, and
when is the first TG set likely to
be shipped from the new Chennai
plant?
The manufacturing lead time exworks
basis for an 800-MW turbine
is around 18-22 months. We
have already started the manufacturing
and supplying of major TG
components to the export market.
Manufacturing of supercritical
turbine involves precision
machining of heavy components,
developing and training such skill
sets and, most, importantly developing
a reliable and sustainable
vendor base in India. We are
steadily and systematically
approaching the above steps and
we expect to deliver the complete
turbine shipped from the Chennai
plant by end of 2013.
The Indian manufacturing sector
is widely believed to be facing
problems in creating an efficient
supply chain. What is your view
and how does Toshiba-JSW plan
to address this issue?
For the survival and competitiveness
we should source as much as
possible from the local industry,
and complete technology transfer
from Toshiba. For more than two
years now, Toshiba's specialists
from Japan are visiting the local
manufacturers and helping them
to develop the products and to put
systems in place to match the
quality standards of Toshiba,
Japan. I am sure we will succeed
in our goal of creating a reliable
supply chain in India.
What was the rationale behind
selecting Tamil Nadu as the site?
Tell us about the strategic advantages
and also about the local
employment opportunities that
the modern plant would create.
The Tamil Nadu government was
very forthcoming (in terms of land
allocation and providing all necessary
clearances (lease of state
government land, infrastructure
building, tax disposal) when
Toshiba JSW showed its intention
to manufacture power plant
equipment in India. Chennai
being a major port destination in
South Asia, the location has
strategic advantages to cater to
the export markets. Hence, it
helps to transport these heavy
equipments via sea route. Since
Chennai in the 4th biggest city in
India, it is excellent also in request
of staff adoption. Toshiba JSW is
expected to have a direct employment
of about 500 people by 2014.
What is your view on the domestic
availability of key material
like special steel that would go
into the making of supercritical
turbine-generators? Would you
also be importing certain varieties
of steel?
To the extent of possible, we are
sourcing raw materials from
India. There are certain heavy
forgings and castings required for
manufacturing of supercritical
turbines and generators. Toshiba
JSW is working closely with the
manufacturers of these products
in developing them as a reliable
vendor base in India.
Do you see the Chennai plant
exporting to other developing
economies?
Yes, the Chennai plant will also
cater to the export market in the
future.
India is considering imposing an
import duty of 19 per cent on
power plant equipment with a
view of curbing imports from
China. What is your reaction?
It will definitely be a welcome
move, as it creates a level playing
field and protects the interest of
the domestic manufacturers who
have made serious investments in
the country.
What is your overall view on the
penetration of Chinese equipment
(BTG sets) in the Indian
power sector?
In the supercritical equipment
market, Chinese equipments
have market share among the customers
who are looking for lowcost
machines. Most of the plants
are not yet operational and the
performance of these low-cost
machines will be known only after
a few years of operation.
On the other hand, Japanese
and European equipments have
hundreds of successfully running
supercritical plants across the
world. Please note that the supercritical
plants being put in India
are for serving the base load
requirement, that means the reliability
and availability of the equipment
is very important.
With more domestic players in
the market today and price levels
becoming competitive we expect
to see a change in the buying pattern
of Indian power project
developers.
Please elaborate on the recent
orders for supercritical power
equipment received by Toshiba
Group in India (e.g. Meja, Kadgi
etc). How does the order pipeline
look?
Yes, Toshiba JSW secured the
orders for Meja 2x660-MW TG
island package and Kudgi 3x800-
MW TG island package as part of
the bulk tendering by NTPC.
There was stiff competition
among the domestic manufacturers
and this order booking shows
Toshiba JSW competitiveness in
the market. We received the above
orders because of the performance
guarantee excellence when
compared to our competitors.
A large number of domestic companies
are entering the power
plant equipment market through
joint ventures. What is your take
on the impending competition?
Fair competition is good for the
industry and brings out the best
for the customer. The Indian
power market has potential for all
the players in the market provided
some of the regulatory bottlenecks,
availability of coal and
projects come up as planned in
the next two five-year plans.
Can you discuss how Toshiba
Group through this joint venture
and other entities aims to
become a complete solutions
provider to India's power generation
sector?
Toshiba Group has established a
network of companies that provides
localised one-stop EPC
solutions, from plant conceptualisation
to commissioning. Toshiba
India Pvt. Ltd in Gurgaon undertakes
overall project management
and plant engineering; TPSC
India in Hyderabad carries out
installation and commissioning;
and Toshiba JSW, the jewel in the
crown, manufactures steam turbines
and generators.
What are the key milestones that
you would like to see the Toshiba-
JSW joint venture achieving
in its first five years?
Toshiba equipment is known for
its technical expertise and reliability.
We are looking for seamless
technology transfer from Toshiba
Japan over a period of time and
attain 100 per cent indigenisation
with the same quality standards
as that of Toshiba Japan. So what
customers will get is Japanese
quality at Indian price!