B.H.E.

1. Indian Power Sector - Past, Present and Future 2. BHEL and its contributions to Power Sector 3. Power Sector Issues Related to Equipment

4. Steps taken by BHEL

5. Steps taken by other agencies 6. Major Concerns for Domestic Industry
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Pre- Electricity Act 2003 period BHELs Capacity and Loading

Orders on BHEL remained far below BHELs installed Capacity during VIII, IX Plan and initial X Plan period. In 90s, economy opened up with substantial incentives by the Government to attract Foreign/ Private developers and power equipment manufacturers further threatened already under-utilized domestic equipment manufacturing capacities. Targets for X Plan (41,110 MW) similar to IXth Plan (40,245 MW) no indication of improvement in success rate till enactment of Electricity Act 2003.

Post - Electricity Act 2003 period BHELs Capacity Augmentation

Various initiatives by Ministry of Power and enactment of Electricity Act 2003 and notification of Electricity Policy provided clearer road map for Countrys Accelerated Capacity Addition Programme with higher confidence to Manufacturers and suppliers.

Capacity augmentation schemes immediately taken up in BHEL based on MOP/ CEAs projections.

Equipment Supply to power projects 4

CEA Conclave on Key Inputs 2009 Status of Implementation Of 11th Plan..contd.

Reasons for delay in 11th Plan projects

Delay in placement of orders - mainly Civil Works & BOPs. Delay and non-sequential supply of material for Main Plant and BoPs. Shortage of skilled manpower for erection and commissioning.

Contractual disputes.
Inadequate deployment of construction machinery. Shortage of fuel (Gas & Nuclear). Delay in Land Acquisition. Delay in creation of infrastructure facilities.
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Critical Issues Discussed in the Conclave Related to Equipment

Promoting indigenous manufacturing of Boilers and Turbines. Manufacturers of Main Plant to develop ancillary units/ vendors commensurate with capacity addition, deliveries to be sequential. Advance procurement action for long lead items like Forgings and castings. Need to attract more vendors in BOP.

In view of acute shortage of Erection/ Commissioning Agencies for executing Civil and Mechanical works, to discuss how to attract more agencies.
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Critical Issues Discussed in the Conclave Related to Equipment

IT based monitoring for projects - ways to achieve this.

Major EPC Contractors should necessarily have construction machinery of their own and not leased ones. Also to play a proactive role in building of large skilled manpower.

Transportation Facilities.
Improvement of infrastructural facilities to speed up project implementation . Standardization: This would help in reducing design, engineering and approval time for drawings thus reducing construction period of power plants.

Critical Issues Discussed in the Conclave Related to Equipment There is need to create indigenous capacity for long lead items such as Castings and Forgings for Turbines & Generators, Boiler quality plates, P-91 piping and CRGO sheet steel for transformers.

Latest technologies need to be adopted to optimize on the use of Land and Water. Promoting new technologies with reduced water requirement.
Acquisition of Energy assets abroad by CPSUs/ Industry. Latest Technology Options: Need to develop a Road Map for incentivising efficient technologies in Generation, Transmission and Distribution. Technologies for minimizing consumptive water requirement by adopting Air Cooled Condensers and Hybrid Systems for Cooling at Thermal Power Stations, Committee by CEA.
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1. Indian Power Sector - Past, Present and Future 2. BHEL and its contributions to Power Sector 3. Power Sector Issues Related to Equipment

4. Steps taken by BHEL

5. Steps taken by other agencies 6. Major Concerns for Domestic Industry
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STEPS TAKEN BY BHEL TO MEET ENHANCED CAPACITY ADDITION REQUIREMENT

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Initiatives taken to meet challenges

Supply Chain Management (SCM) Initiatives:

Outsourcing: Enhanced thrust is being given for outsourcing of low technology/ non-core manufacturing. Delivery of Piping Additional suppliers for Fittings identified to ensure timely delivery of Piping. Empanelling more fabrication vendors and upgrading existing vendors capability. Adopting repeat design of a typical standard unit in line with Chinese Model. Standardization measures initiated to reduce cycle time. Layout of Boiler Island piping Utility requirement of Boiler Auxiliary Pipe sizes

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Initiatives taken to meet challenges

HR Initiatives:
In last two years BHEL has added 8500 persons (ETs, STs & Artisans). Recruitment cycle reduced from 8-10 months earlier to 3-3 months now. New windows opened for intake Lateral recruitment of experienced persons Direct Campus recruitment Special recruitment for difficult sites in North East and J&K. Re-employment of executives who had earlier resigned.

Skills Development: BHEL has taken a stake in ITI in Kabiguru Industrial Training Centre at Bolpur, Shantiniketan, West Bengal in partnerships with DVC, CIL and Sriniketan Shantiniketan Development Authority. Welding Research Institute at Trichy being leveraged to train high pressure welders of contractors. Programmes at Trichy as well as 4 PSRegional offices.
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1. Indian Power Sector - Past, Present and Future 2. BHEL and its contributions to Power Sector 3. Power Sector Issues Related to Equipment

4. Steps taken by BHEL

5. Steps taken by other agencies 6. Major Concerns for Domestic Industry
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Follow-up of International Conclave on Key Inputs

Task Force formed comprising MoP, CEA and CII to coordinate with industry regarding various inputs for power sector. CII has organised number of dialogue with specific industry groups and interested entrepreneurs. Task Force formed 7 Nos. Specialized Subgroups formed to assess 11th Plan requirement and constraints being experienced and suggestions for removing them. Regional level meetings interactions with industry to sensitize them of huge requirement of Power Sector and to encourage new vendors.

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Manufacturing capacity planned by New Ventures .contd

Some other new manufacturers have built up/ are planning to build up manufacturing capacity for manufacture of supercritical boilers in technical collaboration with overseas manufacturers Thermax in collaboration with Babcock-Wilcox Cethar Vessels in collaboration with Riley Power BGR Energy in collaboration with Foster Wheeler Action has been initiated by L&T and Bharat Forge for castings & forgings

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Transportation CEA Conclave in August 2009 has identified Development of transportation facilities, including port handling facilities for equipment and fuel as a key issue 13th Plan and beyond will have only Super-critical and ultra super-critical thermal sets. Due to the dimensions constraint all 800 MW sets and many 660 MW set will have to be necessarily transported by road. Due to their enormous weight road and bridges of sufficiently high strength to with-stand their weight required. Advance class Gas turbines, which have to be sent in fully assembled condition and hence, weigh very high and require road and bridges of high strength.

Generator Stator of Sipat Project from the Russian manufacturer was held up at highway between Mumbai and Nasik for more than 3 months as the Highway was not fit for transportation of the Generator Stator. Such situation to be avoided in future.
Transportation facilities including dedicated freight corridor, port handling capacity, facilities for equipment and fuel need to be enhanced to commensurate with planned capacity addition.

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Concerns for Domestic Players In addition to BHEL, many other manufacturers like Bharat Forge, L&T, JSW etc. are reportedly setting-up of manufacturing facilities and acquiring technology for Power Plant Equipment, based on the encouragement from Government. The additional domestic capacities thus being created involves huge investments. Additional Capacity of BHEL and capacities of new manufacturers provides adequate manufacturing capacity in the country as well as competition to each other to offer the best technology and products. Therefore, a level playing field is required to be provided to Indian manufacturers so that the facilities being set up by them are adequately loaded.

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THANK YOU

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