Power tool cos may get easier norms
As per the proposed changes, the companies interested in setting up equipment manufacturing facilities in the country may not be required to meet the condition of having prior experience of delivering equipment for which it is interested to put up...
By Subhash Narayan, TNN |
NEW DELHI: The government is likely to relax pre-qualification norms to facilitate the entry of new players into power equipment manufacturing. This has become necessary in the wake of huge capacity addition programme of over 78,500 MW during Eleventh Plan, with limited supply of equipment.
As per the proposed changes, the companies interested in setting up equipment manufacturing facilities in the country may not be required to meet the condition of having prior experience of delivering equipment for which it is interested to put up the facility.
According to official sources, such companies may be allowed to put up manufacturing facilities, even if they have a global experience of supplying similar kind of equipment. Moreover, an Indian company partnering with an international company with experience could also set up manufacturing facility in the country on the back of this support or vice versa.
The government is also considering modifications in the tendering process where bids for equipment supplies may be given to companies interested in setting up a domestic manufacturing facility. The changes would be included in new pre-qualification norms for companies interested in equipment manufacturing being finalised by the Central Electricity Authority (CEA). Once implemented, it is expected to give a boost to manufacturing that is currently largely dominated by public sector BHEL.
The power ministry feels that the sole equipment supplier BHEL may once again fail to supply equipment for 58,600 MW of thermal capacity to be added in the Eleventh Plan. As per the ministry’s estimates, BHEL could only supply 30,000 MW of equipment with the rest dependant on imports or growth of second equipment manufacturer.
CEA chairman Rakesh Nath confirmed that the authority was working to relax pre-qualification criteria for companies interested in setting up equipment manufacturing base in the country.
"We have constituted a group to formulate new pre-qualification criteria which will resolve difficulties faced by new entrants in power equipment manufacture and also suggest measures to simplify the criteria to enable new companies to enter the field," he said speaking at the India Electricity 2007 conference.
Mr Nath also said that CEA is working on model contract guidelines with proper sharing of risks in a bid to tide over the shortage of civil contractors in hydro projects.
As per the proposed changes, the companies interested in setting up equipment manufacturing facilities in the country may not be required to meet the condition of having prior experience of delivering equipment for which it is interested to put up the facility.
According to official sources, such companies may be allowed to put up manufacturing facilities, even if they have a global experience of supplying similar kind of equipment. Moreover, an Indian company partnering with an international company with experience could also set up manufacturing facility in the country on the back of this support or vice versa.
The government is also considering modifications in the tendering process where bids for equipment supplies may be given to companies interested in setting up a domestic manufacturing facility. The changes would be included in new pre-qualification norms for companies interested in equipment manufacturing being finalised by the Central Electricity Authority (CEA). Once implemented, it is expected to give a boost to manufacturing that is currently largely dominated by public sector BHEL.
The power ministry feels that the sole equipment supplier BHEL may once again fail to supply equipment for 58,600 MW of thermal capacity to be added in the Eleventh Plan. As per the ministry’s estimates, BHEL could only supply 30,000 MW of equipment with the rest dependant on imports or growth of second equipment manufacturer.
CEA chairman Rakesh Nath confirmed that the authority was working to relax pre-qualification criteria for companies interested in setting up equipment manufacturing base in the country.
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"We have constituted a group to formulate new pre-qualification criteria which will resolve difficulties faced by new entrants in power equipment manufacture and also suggest measures to simplify the criteria to enable new companies to enter the field," he said speaking at the India Electricity 2007 conference.
Mr Nath also said that CEA is working on model contract guidelines with proper sharing of risks in a bid to tide over the shortage of civil contractors in hydro projects.
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