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No impact of coal controversy: BHEL

Em News Bureau ,  Thursday, October 18, 2012, 17:40 Hrs  [IST]

Bharat Heavy Electricals has clarified through a statement that it has a strong order book for execution in the coming years, stagnation in the power sector and intense competition notwithstanding. BHEL also asserted that the ongoing controversy over coal allocation for power plants would not have any impact on its operations.

Despite stagnation in the power sector and intense competitive pressure in domestic and overseas markets, BHEL has a strong order book for execution in 2012-13 and beyond of over Rs 1,30,000 crore, the company said.

BHEL said from being one of the most rapidly growing sectors till last year, the domestic power sector has witnessed a sharp slowdown.

In recent weeks, there have been reports that some of the projects, for which BHEL is supplying equipment could be impacted by coal block allocation issues. Projects currently being executed by BHEL have the required coal linkages and are progressing satisfactorily, the firm noted.

The power equipment major emphasized that ongoing coal allocation controversy would absolutely have no impact on the company's order book or its operations.

According to BHEL, the 4x270-mw Chandwa project, being executed by the company, has the necessary coal linkage from Coal India and is in an advanced stage of execution. Similarly, the 4x600- mw project at Tanmar of the Jindal Power Ltd being executed by BHEL is also in a very advanced stage of execution and has the coal linkage through Coal India. The projects of JSPL, for which doubts on the coal blocks at Jitpur and Amarakonda have been raised, pertain to a new project proposed by JSPL at Godha. The order for this project has still not been finalized.

The statement said various customers such as DB Power, Jindal Photo Ltd, Adhunik Power and GVK Power -- which have been allocated coal mines for their upcoming power plants -- also have alternative coal linkage/tapering linkage available from Coal India or its subsidiaries. In the case of Mandakini-A Block, allotted to Monnet Ispat & Energy Ltd, the company has communicated to BHEL that they do not envisage any problem with respect to their 2x525-mw TPS at Angul, being executed by BHEL.

Meanwhile, BHEL said project developers are facing numerous constraints such as coal and gas allocations, environmental clearances and financing.
 
                 
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