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Rs 3000 cr NTPC order for BHEL to help SME vendors as well

New Delhi, Mar 25 (KNN) Bharat Heavy Electricals Ltd (BHEL) has bagged orders worth Rs 3,000 crore from NTPC, a development which will also help several SME vendors of the power equipment major in the public sector. Lots of SME vendors depend on BHEL‘s business.

In a statement issued yesterday, BHEL said the contract, valued at nearly Rs 3,000 crore, has been won in the face of stiff international competition. 

"With this order, BHEL has taken its tally of super critical boilers of 660 MW, 700 MW and 800 MW ratings to 32 sets, cementing its leadership position in super critical technology," it said. 

The scope of work includes design, engineering, manufacture, supply, erection, testing and commissioning of the steam generators and auxiliaries. 

"The key equipment for the contract will be manufactured at BHEL's Trichy, Ranipet, Bhopal, Hyderabad and Bangalore plants...," the statement added. 

In the process, the SME vendors of the company in and around the plant will stand to benefit.

Reacting to this, President of Karnataka Small Scale Industries Association (KASSIA), B P Shashidhar said, “It will definitely help the SME units in Karnataka. More preference should be given to the SME vendors for procurement.”

BHEL orders affect hundreds of SME vendors who are outsourced manufacturers of spare-parts and other key engineering products used for different sets of electrical and power equipment manufactured by the leading public sector company.

The state-owned heavy electrical major has received the order from the country's largest power producer NTPC for supply of 2x800 MW steam generators (boilers) with super critical parameters for the project at Darlipali in Odisha. 

However, President of Tamil Nadu Small and Tiny Industries Association (TANSTIA), K Gopalakrishnan said, “BHEL Trichy has been diverting all its orders to Pune because of the directive received from the Industry Ministry.  As a result, BHEL ancillary units in a 150 kms radius around BHEL Trichy are in a very pathetic condition.

“There are no orders and no payments. In Ranipet, all the ancillary units have closed. There are several clusters of fabrication units and component manufacturers in the area who are jobless now.
“But, if it is for boilers, the SME units here are likely to get orders,” he added.