BHEL loses Rs 36K cr worth deals to Chinese competitors

Bharat Heavy Electricals Limited (BHEL) has lost Rs 36,000 crore woth of business to its Chinese counterparts in the last fiscal. Taking advantage of India’s open approach to foreign players, Chinese power equipment suppliers made full use of their higher range of products, grabbing a whopping 18,000 MW in private deals over the Indian firm.

“We have lost nearly 18,000 MW of private deals to Chinese suppliers. This is valued at approximately Rs 2 crore per MW crore,” BHEL chairman and managing director Ravi Kumar told The Indian Express.

During the months leading up to and including the 2008-2009 fiscal, Chinese suppliers were given enough space to install thermal power generators which maxed out at 300-600 MW, compared with the 250-500 MW range that Indian companies were limited to.

Allowing this to happen was India’s open approach to foreign players. This, coupled with the stronger Chinese yuan, allowed foreign suppliers to pinch a large portion of the market, usually dominated by BHEL, Kumar said and pointed out that the Central Electricity Authority has since levelled the playing field by allowing generators of all four ratings, thus resulting in BHEL earning 95 to 100 per cent of its projects from private vendors.

ref:
http://www.indianexpress.com/news/BHEL-loses-Rs-36K-cr-worth-deals-to-Chinese-competitors/493834