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BHEL most successful in NTPC’s supercritical orders

EM News Bureau ,  Sunday, April 06, 2014, 15:06 Hrs  [IST]

Supercritical PlantBharat Heavy Electricals Ltd has been most successful in winning mandates for supercritical power equipment in tenders issued by Central power utility NTPC Ltd. A special study by ERIL Research indicates that BHEL cornered a share of nearly 37 per cent in NTPC’s supercritical power equipment orders finalized so far. Following BHEL was Doosan of Korea with a share of 13.8 per cent. The joint venture between Toshiba and JSW Group came a close third with 12.2 per cent share.

The market share was calculated in physical terms (on the basis of capacity and not value of equipment). Further, the two broad packages (boilers and turbine-generators) were given equal weight while calculating the market share. When this study was completed, NTPC had finalized orders for 31 supercritical power units that included 22 of 660-mw rating and 9 of 800-mw rating. The total capacity for which equipment was ordered was 43,440 mw, comprising boilers worth 21,720 mw and turbine-generators of the same capacity. BHEL, considering both boilers and TG sets, won orders for 16,020 mw of equipment, implying a market share of 36.9 per cent.
 
Misses being India’s first

The first supercritical unit of NTPC to commission was the 3x660-mw Sipat (Stage 1). The milestone was reached in June 2011, with equipment supplied by international suppliers -- Doosan of Korea (boilers) and OJSC Power Machines of Russia (turbine generators). The second and third units of Sipat (Stage 1) were commissioned in December 2011 and June 2012, respectively.

It was widely believed that NTPC's Sipat-Stage I, with orders for main plant equipment placed way back in 2004, would be India's first supercritical power project to turn operational. However, the project was fraught with unexpected delays resulting from alleged poor performance of the equipment suppliers. Adani Group's Mundra power project in Gujarat is India's first supercritical power project to turn operational. The first unit of the 2x660-mw Mundra (Stage II) project was synchronized in December 2010 while the second reached the same milestone in early June 2011. Sepco-III of China was contracted to supply the main plant package. So far, Adani has commissioned ten supercritical units (each of 660-mw) at different locations including Mundra (Gujarat), Kawai (Rajasthan) and Tiroda (Maharashtra). All the units have been supplied by Chinese suppliers.

It is interesting to note that despite the overall antagonism to Chinese equipment, the first supercritical power unit to go operational was supplied by China.



NTPC embarked on its supercritical journey in 2004-05 when it planned the Sipat (Stage 1 of 3x660-mw) and Barh (Stage 1 of 3x660-mw) projects. BHEL at that time was building competence in the supercritical technology. Due to some delay in BHEL equipping itself with the required technology, NTPC had to place orders on foreign suppliers that included Technopromexport and OJSC Power Machines (both Russia) and Doosan (Korea). In fact, BHEL was ready with the technology when Barh Stage 2 of 2x660-mw came up for award.

NTPC began seeking supercritical power equipment on a serious note from around 2010. It floated a mega tender relating to nine projects aggregating 7,260 mw that also included one project on behalf of Damodar Valley Corporation. This tender was the first big push for supercritical power equipment in India — not just for BHEL but also for new entrants in the supercritical equipment industry. It may be mentioned that a new crop of supercritical power equipment suppliers has emerged in recent years. These include BGR Energy (in association with Hitachi), Larsen & Toubro (teaming up with Mitsubishi), JSW Energy (with Toshiba) and Bharat Forge (tying up with Alstom). Doosan Heavy Industries is the only company that is going solo. All these suppliers are eyeing the growing supercritical power equipment market and are readying themselves with a local manufacturing base.

NTPC’s mega tender, which incidentally took some time to finalize pending technical matters, was followed up by several other projects for which NTPC sought equipment. It is very interesting to observe that no Chinese supplier qualified for supplying to NTPC as the Indian power utility mandated that suppliers would need to create a manufacturing facility in India.

Suppliers to NTPC projects
Company
Capacity
Market

(MW)
share (%)
Alstom+Bharat Forge
4,620
10.6
BGR+Hitachi
4,240
9.8
BHEL
16,020
36.9
Doosan
5,980
13.8
L&T+Mitsubishi
1,320
3.0
OJSC Power Machines, Russia
3,960
9.1
Technopromexport, Russia
1,980
4.6
Toshiba+JSW
5,320
12.2
Total
43,440
100.0

Finer details: For NTPC, BHEL has so far been mandated to supply 23 elements, which include 10 boilers of 660-mw and four of 800-mw, seven TG sets of 660-mw and two of 800-mw. Doosan, the second most successful supplier, has been contracted to supply eight boilers (three of 660-mw and five of 800-mw). This Korean supplier is focusing only on the boiler market for supercritical power plants. Russian suppliers OSJC Power Machines and Technopromexport did not participate in recent tenders of NTPC as they did not intend to set up a local manufacturing base.

The joint venture of JSW and Toshiba – Toshiba JSW Power Systems Pvt Ltd – has won orders for seven TG sets that include five of the 800-mw class. Incidentally, the JV is only addressing the turbine-generator market and not that of boilers (steam generators). The JV between L&T and Mitsubishi has been the least successful with respect to NTPC. It has won just one order – that of supplying two boilers of 660-mw for NTPC’s Tanda power project in Uttar Pradesh. L&T and Mitsubishi have formed two joint ventures – one each of boilers and TG sets. It may be mentioned that despite being least successful with respect to NTPC, the L&T-Mitsubishi alliance has won orders from private sector players.

The JV of BGR and Hitachi had won the mandate for supplying TG sets for the 2x800-mw Darlipalli project in Orissa. However, there was much delay on part of NTPC in securing mandatory clearances, which delayed project mobilization. BGR-Hitachi withdrew from the project due to this delay. The equipment was re-tendered and the mandate finally went in favour of the Toshiba-JSW combine. NTPC had more trouble in Orissa. It had planned to set up a 2x800-mw project at Gajamara in Dhenkanal district. As it faced much delay in acquiring land and securing clearances, NTPC shifted the project to Gadarwara in Madhya Pradesh.
Supercritical capacity
As of mid-March 2014, India had 13,900 mw worth of supercritical units commissioned. While NTPC's 3x660-mw Sipat-I is the lone project in the public sector, the rest have been commissioned by the private sector. Adani Power has commissioned the maximum of 6,600 mw of supercritical power capacity represented by ten units of 660-mw each. Supplied entirely by Chinese company Sepco-III, the units are located at Adani Power's plants at Mundra (Gujarat), Tiroda (Maharashtra) and Kawai (Rajasthan). Tata Power has commissioned the 4,000-mw Mundra ultra mega power project in Gujarat. This plant has India's only 800-mw coal-fired units so far. Meanwhile, Reliance Power is in the process of commissioning its 6x660-mw Sasan UMPP in Madhya Pradesh. So far, two have been commissioned while the boiler light-up of the third is currently in progress.



Vision: NTPC’s current installed capacity is 42,454 mw that includes power plants wholly owned or set up in joint ventures. Though NTPC is predominantly a thermal power company, it also has hydropower and renewable energy plants. All its future thermal power plants will be based on supercritical power technology. NTPC has targeted to have a total capacity of 65,000 mw, as against 75,000 mw planned earlier. By 2032, NTPC aims to have a power portfolio of 1,28,000 mw.

Supercritical technology, and later advanced supercritical technology, is the way forward for India. The Central government has estimated that in the ongoing XII Plan period, around 60 per cent of the new coal-based power capacity coming up in India will be based on supercritical technology whereas in the XIII Plan period (FY18 to FY22), all the upcoming coal-fired power plants will run on supercritical power technology.

Supercritical Power Projects of NTPC*
Project
State
Capacity
(mw)
Boiler
TG Set
Barh Stage 1
BIH
3 x 660
Technopromexport, Russia
OJSC Power Machines, Russia
Barh Stage 2
BIH
2 x 660
BHEL
BHEL
Darlipalli
ORI
2 x 800
BHEL
Toshiba+JSW***
Gadarwara
MP
2 x 800
BHEL
BHEL
Kudgi
KAR
3 x 800
Doosan
Toshiba+JSW
Lara
CHH
2 x 800
Doosan
BGR+Hitachi
Mauda
MAH
2 x 660
BHEL
BHEL
Meja
UP
2 x 660
BGR+Hitachi
Toshiba+JSW
Nabinagar
BIH
3 x 660
BHEL
Alstom+Bharat Forge
North Karanpura
BIH
3 x 660
BHEL
BHEL
Sipat Stage 1
CHH
3 x 660
Doosan
OJSC Power Machines, Russia
Solapur
MAH
2 x 660
BGR+Hitachi
Alstom+Bharat Forge
Tanda
UP
2 x 660
L&T+Mitsubishi
Alstom+Bharat Forge
*Projects where BTG orders have been finalized, as of mid-March 2014; List may not be exhaustive
***Re-tendered, old order on BGR-Hitachi was cancelled

NTPC-BHEL: It is interesting to note that NTPC and BHEL have formed a joint venture NTPC-BHEL Power Projects Pvt Ltd (NBPPL) to act as an EPC contractor for power plants and also to manufacture power equipment.

The original business plan was to set up a manufacturing plant for balance of plant (BOP) equipment and purchase EPC equipment in the first phase with a project cost of Rs.12 billion. The second phase envisioned a manufacturing plant for boiler turbine generator at a project cost of Rs.48 billion.

While the company has deferred phase 2 due to sluggish market conditions, project cost for Phase-1 has been reduced to Rs.3.6 billion by discarding the plan to purchase EPC equipment. In the revised Phase 1, the company is setting up a manufacturing unit for BOP equipment such as coal handling plants (CHP) and ash handling plants (AHP) in Mannavaram, Andhra Pradesh. The company has entered into a technical collaboration with Dearborn Mid-west Conveyor Company Inc for CHPs, but has yet to identify a technology partner for AHP.

Recently, the company has been awarded a complete EPC contract worth Rs.2,219 crore from NTPC relating to the 1x500-mw Feroze Gandhi Unchahar thermal power project in Uttar Pradesh. Industry sources indicate that NBPPL will focus mainly on balance of plant contracts. In terms of EPC contracts, the company would pursue orders relating to power plants using subcritical technology.

Global players in Indian supercritical equipment market
Company
Indian Partner
Equipment
Plant Location
Doosan
---
B
Chennai, TN
Mitsubishi
L&T
B, TG
Hazira, GUJ
Alstom
Bharat Forge
TG
Sanand, GUJ
Hitachi
BGR Energy
B, TG
Chennai, TN
Toshiba
JSW Group
TG
Chennai, TN
Note: B=Boilers, TG=Turbine-Generators
 
                 
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