Govt gets loyal MP to divert orders to Bhel

Unusual times call for unusual measures. At a time when economic recession is deepening, the government has leaned on a private sector
biggie to divert a major supply order that had appeared headed for China to the public sector.

Sources said that at the Centre's behest, the steel-to-power conglomerate led by Congress lawmaker Naveen Jindal has agreed to order from BHEL instead of from the Chinese manufacturers the group preferred. The first order worth Rs 10,000 crore for equipment to generate 2,400 mw is to be placed shortly, and there is scope for another Rs 15,000 crore worth orders for 2,580-3,200 mw.

On record though, officials denied any pressure and said these were "purely commercial decisions taken by independent corporates". Asked about the issue, minister of state for power Jairam Ramesh told TOI, "The government's not there for commercial discussions or decisions. Our (government's) job is to first facilitate and then felicitate (growth in generation capacity)."

But sources said that it required more than a nudge to get the Jindal group to recast its shopping list. On his part, Jindal confirmed ordering equipment for "about" Rs 10,000 crore from BHEL but declined to comment further. "Let's focus on what has been finalised... there's no point in talking prematurely about whether this will happen or that. When something happens, we'll let you know," he told TOI on Thursday.

Domestic manufacturers such as BHEL have steadily lost out as Chinese manufacturers have emerged as preferred suppliers for power projects in recent times. Along with the rise in their popularity, questions over their quality and reliability have also arisen in various qurters of the government, including the Central Electricity Authority.


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