Delay in ancillary projects may derail power capacity targets

Tag : ancillary equipments




Anil Sasi
New Delhi, June 27 Tardy progress on award of ancillary projectsaccompanying upcoming thermal power stations could end up playingspoilsport to the Centre’s power capacity addition target forthe current Plan period.
While the Government has been focussed on expeditious placement ofmain plant equipment orders to minimise slippages in the currentPlan period’s capacity addition target of 78,577 MW, theaward of the ancillary units, collectively termed asbalance-of-plant (BoP) packages, are trailing badly for thermalprojects slated to come up during the current Plan.
Till mid-June 2008, BoP packages for over 45 per cent of thethermal projects slated to coming up during the current Plan arestill to be placed with suppliers.
Thermal projects are the mainstay of the capacity addition duringthe Eleventh Plan, forming nearly 75 per cent of the total capacityof 78,577 MW being targeted during the five-year period. Delays inplacement of BoP packages, which unless done in tandem with themain plant order, can hold up a project and slow progress on BoPpackages, have been singled out as among the biggest reasons forslippages witnessed in the last Plan period. Reasons for delay
Inadequate numbers of BoP equipment suppliers, besides lacklustreresponse from existing players, are among the key reasons cited forthe slow progress in the award of BoP packages.
“Besides the main plant equipment, unless BoP packages areawarded in tandem with the main plant order, the project is mostcertainly destined to be held up.
Till the last nut and bolt is in place, the project cannot getcommissioned.
What we need is a number of medium scale players who can supplystuff.
At present, there are very limited vendors for each of the BoPpackages and at times only a single quotation is received,” asenior NTPC official said. Foreign vendors
While the number of qualified vendors are not commensurate with thelarge capacity addition programme, as is planned for the currentPlan period, there is also a very limited participation fromforeign vendors in BoP packages, Power Ministry officials said.
They said that there was an urgent need for enhancing design andmanufacturing capacity of auxiliaries such as high capacity mills,fans and pumps, and material and ash handling systems.
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