The
Government has said that steps are being taken to protect the interests and
efficiency of Bharat Heavy Electricals Limited (BHEL) in the face of
competition from China. Stating this in written reply to a
question in Lok Sabha, Shri Praful Patel, Minister of Heavy Industries & Public Enterprises, said
that a number of Chinese companies are competing with
BHEL in the Indian market such as Dongfang, Harbin
Power, Shanghai Electric, SEPCO etc. Out of 54,964 MW utility power generating capacity added
during the 11th Five Year Plan, equipment from Chinese suppliers/manufacturers
accounted for nearly 18,500 MW (i.e. 34%).
The Minister said that the major reasons affecting the performance and also the decreasing
order book position of BHEL in the recent past is due to a combination of factors
which inter-alia include:
- a sharp contraction in new orders maturing in the domestic power
sector market due to issues related to non-availability of land, coal/fuel
linkages, environmental clearances etc.
- orders getting deferred or being put on hold;
- weak investment sentiments, financing constraints from the banks;
- customers constraints in releasing payments for deliveries and
thereby also curtailing progress of some of the power projects;
- aggressive competition from new players / Joint Ventures formed in
the private sector in
the Country for super-critical boilers and turbine generators affecting price realisation and impacting
margins;
- inflationary pressures and hardening of interest rates impacting
cost / domestic demand and cost of capital; and
- political turmoil /
armed conflict in countries like Syria.
