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.
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
[May 5-11, 2008]