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Bhel wins CSEB orders worth Rs 3,368 cr

A Business Correspondent

Bharat Heavy Electricals Ltd has won three orders valued at Rs 3,368 crore for supplying and installing main plant equipment from Chhattisgarh State Electricity Board.
Bhel will supply one unit of 500 mw for the Korba West thermal power project and two such units for the Marwa project in Janjir Champa district. Speaking to Projectmonitor, a CSEB official said that land acquisition for the Marwa project had been completed and environment clearance was in place. The three units are scheduled for commissioning within the 11th Plan period, and will feed 36 million kwh to the grid daily.
The order for the Korba West project was earlier placed on China National Machinery & Equipment Import & Export Co. in August last year but was cancelled recently due to the Chinese contractor's inability to start work on time. As reported exclusively in Projectmonitor (February 4-10, 2008), CSEB was to either invite fresh bids or award the project to Bhel. The configuration of the Korba West expansion project has now changed from 2x300 mw to 1x500 mw, a CSEB official confirmed. The Korba West thermal power station, in Korba district, currently has four coal-fired units of 210 mw.
Bhel now has a manufacturing capacity of 10,000 mw that will be enhanced to 15,000 mw over the next two-three years with an investment of Rs 4,200 crore.

Chinese contracts

Although now cancelled, industry observers widely believe that CSEB was the first and only state government utility to have appointed a Chinese EPC contractor for a power generation project. Centrally-owned Bharat Heavy Electricals Ltd has been the traditional favourite for state government power generation projects, although episodes of Indian private sector contractors (Reliance Energy Ltd, for instance) bagging main plant package orders are now surfacing. There are several cases of Chinese companies winning projects from the private sector, but there is yet no instance of a state or Central government entity appointing Chinese EPC contractors for power generation projects.


[May 5-11, 2008]



 

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