Power sector needs to spend Rs 6k cr a yr to import equipment

NEW DELHI: The Indian power industry will need to spend Rs 6,000 crore annually to import equipment for meeting the government's target of adding 14,000 MW generating capacity every year, says an Assocham study.

Domestic availability of power equipment is worth only around Rs 2,000 crore, said the study.

"Bharat Heavy Electricals Ltd, which is the largest power equipment manufacturer, is unable to meet all demand with a surge in power generation projects that are under construction," said Assocham President Swati Piramal.

According to the study, BHEL's annual equipment capacity is expected to be raised from 6,000 MW to 10,000 MW a year.

It said, however, that imports will become inevitable and will create huge prospects for investors in the power sector, especially from the overseas.

The report said the demand for power equipment would also come from a big surge in nuclear generation capacity over the next few years.

The study said a big push in (thermal) power generation would come from public sector company NTPC. With an existing generation capacity of 30,644 MW, it plans to add 22,400 MW in the ongoing 11th Plan.