National

``Allow NTPC to enter equipment manufacturing''

Special Correspondent

NEW DELHI: The Parliamentary Standing Committee on Energy has expressed concern over the "critical power situation" and the failure to achieve 10th Plan targets due to poor delivery and shortage of plant equipment.

It recommended adopting international bidding for procuring equipment and exploring the possibility of allowing the National Thermal Power Corporation (NTPC) and other players to enter the equipment manufacturing business.

In its 20th report, the committee headed by Congress MP Gurudas Kamat said 53 per cent of capacity addition target had slipped to the 11th Plan due to delay in supercritical technology and supply of equipment and materials, as Bharat Heavy Electricals Limited (BHEL), the sole equipment manufacturer, seemed to be overburdened.

The situation was a matter of concern. In order to ensure that capacity addition did not suffer during the 11th Plan due to delay on the part of BHEL, the Government should opt for international competitive bidding for procuring equipment from other suppliers as well.

The committee said the Government proposal to enhance equipment-manufacturing capacity in India, under the flagship of NTPC and other players, should be vigorously pursued to its logical conclusion within a time frame. The NTPC proposal for looking at the possibility of entering into ongoing equipment manufacturing business should also be pursued simultaneously.

The report further said it was pertinent to point out that a number of projects of the 10th Plan ordered on BHEL were delayed due to delayed and non-sequential supply of equipment and materials and inadequate commissioning teams. Some of the projects, expected to be commissioned during the last quarter of 2006-07, were also running behind schedule due to these reasons.

Secretary (Power) informed the committee that serious thinking was going on within the Power Ministry to develop another manufacturing agency.

© Copyright 2000 - 2009 The Hindu