Mumbai, Aug (EPC News): The JV between NTPC and BHEL is expected to increase the domestic manufacturing capacities in the Balance of Payment segment. At present, the limited number of BoP vendors in India may not be able to effectively support the 100GW capacity additions planned over the next 6 – 7 years.
Most of the BoP vendors are essentially system integrators and source their requirements from relatively smaller manufacturers with limited capacity and capability to expand on technology, engineering and manufacturing. Analysts believe that the scheduled commencement of operations at NBPPL’s manufacturing facilities from FY2014 would help in mitigating the anticipated shortage in the BoP segment.
Though the primary objective of setting up NBPPL is to undertake EPC contracts for power plants and manufacture power equipment, analysts feel that NBPPL would initially focus on setting up its BoP manufacturing facilities, especially coal and ash handling plants. Recent press articles suggest that NBPPL is actively scouting for a global technology provider to support the coal and ash handling segments of the BoP-EPC projects to be taken up by it. The foreign technology partner may also be offered a minority stake in NBPPL.
Once selection of the foreign technology partner is finalised and clarity emerges regarding the commercial operation date (COD), increasing number of BoP –EPC projects attributable to NTPC and BHEL being awarded to NBPPL. While the above developments may help in alleviating the perceived shortage of BoP vendors, it has the potential to intensify competition in the BoP space leading to loss of pricing power for the existing and aspiring BoP players such as BGR Energy, Mcnally Bharat, Sunil Hitech and TRF.
EPC News Bureau
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epcworld
| Posted on:8/20/2010 at 7:44 AM