The role of Chinese main plant
equipment in Indian power
generation plants has been a
subject of great debate. Now,
recently-released statistics by the
government have helped quantify
the phenomenon. In the XI Plan
period that ended on March 31, 2012,
China had a 40 per cent share in the
thermal power capacity
commissioned in the country.
Further, China has the comparable
share in terms of thermal power
plants currently under construction.
China's share in other type of power
plants—hydropower, nuclear or
renewable—is currently minimal.
The biggest market for China today is
coal-fired power plants, which is
incidentally the main source for
electricity generated in the country.
Some Chinese companies currently
supplying to India include Shanghai
Electric, Harbin, Dong Fang, SEPCO
III, etc.
In terms of actual number, China
accounted for 17,772 mw of new
thermal power generation capacity
added during the XI Plan period, out
of the total of 45,064 mw. It is
interesting to note that apart from
private sector projects that of
course formed the bulk, China also
contributed to public sector
projects. State government-owned
power utilities of West Bengal and
Chhattisgarh placed orders on
Chinese equipment. China also
made a backdoor entry in supplying
power equipment to Central
government projects, via private
EPC contractors. At least one case
known to Electrical Monitor is that of
Damodar Valley Corporation that
received Chinese equipment for its
Raghunathpur power project via
private EPC contractor Reliance
Infrastructure.
Untitled Document
SUPPLIERS TO THERMAL POWER PROJECTS |
|
Chinese Suppliers |
Others |
Total |
Pvt Projects |
Others |
Total |
Commissioned in XI Plan |
MW |
15,072 |
2,700 |
17,772 |
27,292 |
45,064 |
|
% share |
33.4 |
6.0 |
39.4 |
60.6 |
100.0 |
Under Construction |
MW |
36,250 |
2,650 |
38,900 |
57,750 |
96,650 |
|
% share |
37.5 |
2.7 |
40.2 |
59.8 |
100.0 |
Source: PIB |
Currently, 96,650 mw worth of
thermal projects are under
construction, government statistics
estimate. Out of these Chinese
equipment are seen playing a role in
38,900 mw, representing a share of
40.2 per cent.
As per mega power policy, all mega
power projects are eligible to import
equipment from any country,
including China, at zero custom
duty. All other projects are required
to pay import duties as per extant
rate. No decision on the proposal to
levy of duty on import of power
equipment has been taken as yet.
The high market share that China
currently enjoys is due to the fact
that Chinese power equipment is
much cheaper than that available
domestically. Besides, the lead time
in ordering Chinese equipment is
substantially lower. Further, with
Indian suppliers—already in limited
numbers—busy with their current
order pile, Chinese equipment
remains the only logical alternative.
Experts feel that once availability of
domestic equipment improves,
which is expected in view of the large
manufacturing capacity coming up
from new players, the Chinese grip
might loosen a bit. The new crop of
equipment suppliers is mainly in the
form of joint ventures between
Indian and multinational companies.
Most of these JVs are aiming to
produce supercritical-grade power
generation equipment (See table),
which is expected to witness
widespread deployment in upcoming
coal-fired power plants.
Untitled Document
JVs for Superctiical Equipment |
Name of JV |
Local Company |
Equity (%) |
Foreign Partner |
Equity (%) |
Location |
Equipment |
L&T-MHI Boilers Pvt Ltd |
Larsen & Toubro |
51 |
Mitsubishi Heavy Inds, Japan |
49 |
Gujarat |
B |
L&T-MHI Turbine Generators Pvt Ltd |
Larsen & Toubro |
51 |
Mitsubishi Heavy Inds, Japan |
49 |
Gujarat |
TG |
Toshiba JSW Turbine & Generator Pvt Ltd |
JSW Group |
25 |
Toshiba, Japan |
75 |
Tamil Nadu |
TG |
Alstom Bharat Forge Ltd |
Bharat Forge |
49 |
Alstom, France |
51 |
Gujarat |
TG |
Thermax Babcock & Wilcox Energy Solutions P Ltd |
Thermax |
51 |
Babcock & Wilcox, USA |
49 |
Maharashtra |
B |
BGR Turbines Company (P) Ltd |
BGR Energy |
74 |
Hitachi Ltd, Japan |
26 |
Tamil Nadu |
B |
BGR Boilers Pvt Ltd |
BGR Energy |
70 |
Hitachi Power Europe, Germany |
30 |
Tamil Nadu |
TG |
B=Boilers, TG=Turbine-Generators |