Bhel can't stand losing orders to Chinese firms - CMD

Competition from home-grown private sector companies isn't all that bad, but losing orders to Chinese firms is what makes state-run power equipment supplier Bhel feel miserable, admits its Chairman and Managing Director K Ravi Kumar.

"I don't mind competition from private domestic players, but I feel bad if the order is won by any Chinese company," he told PTI, alluding to the 18,000 Mw worth equipment orders that the PSU has lost to Chinese companies.

Bhel also recently lost an order for supplying 800 Mw super critical technology to Andhra Pradesh Generation Company (APGENCO) to domestic company L&T-Mitsubishi Heavy Industries.

In India, International Competitive Bidding (ICB) route is strictly adhered to by the companies who bid for supplying equipments to the power projects. Whereas, there is no such system in China.

Asked whether Bhel lost orders despite ICB, Ravi Kumar said: "We have expertise for supplying equipments for 250 and 500 Mw but in between suddenly the norms were changed to 300 and 600 Mw only to accomodate Chinese firms. But this norm has now been removed."

But in the process, Bhel lost orders worth 18,000 Mw from private players.

Bhel, which has joined hands with French equipment maker Alstom for manufacturing 800 Mw in the super-critical technology, is bidding aggressively and is hoping to get orders in this in the near future.

source:
http://www.business-standard.com/india/storypage.php?tp=on&autono=44811