Bhel plans cheap machines to tackle Chinese threat

Competition to Indian power equipment manufacturing companies from China is all set to change the rules of the game. The average cost of setting up a power plant is set to decline to less than Rs 2.7 crore per megawatt (mw) from Rs 4 crore at present.

Indian electrical equipment major Bharat Heavy Electricals Ltd (Bhel) is all set to develop boiler technologies that would compete directly with cut throat prices offered by Chinese majors which has turned the heat on Indian manufacturers.

This would translate into the fact that Bhel would erect thermal power plants at costs less than Rs 2.7 crore per mw "" the price offered by Chinese, against the current cost which rules around Rs 4 crore per mw.

The Chinese equipment manufacturer Dongfang Electric Corporation (DEC) has bagged the 2x300 mw Sagardighi project.

In response, Bhel has decided to develop technologies and processes that would allow it to drastically lower costs.

Bhel officials said today, "Bhel is gearing up to meet Chinese competition with better products at competitive prices. Bhel engineers are looking into possible areas which could provide economy and are in the process of finding out ways and means of competing with China." The company is also planning to develop technology for 300 mw generators.