BHEL most suc­cess­ful in NTPC's su­per­crit­i­cal or­ders

Electrical Monitor - - FRONT PAGE - Venu­gopal Pil­lai

Bharat Heavy Elec­tri­cals Ltd has been most suc­cess­ful in win­ning man­dates for su­per­crit­i­cal power equip­ment in ten­ders is­sued by Cen­tral power util­ity NTPC Ltd. A spe­cial study by ERIL Re­search in­di­cates that BHEL cor­nered a share of nearly 37 per cent in NTPC’s su­per­crit­i­cal power equip­ment or­ders fi­nal­ized so far. Fol­low­ing BHEL was Doosan of Korea with a share of 13.8 per cent. The joint ven­ture be­tween Toshiba and JSW Group came a close third with 12.2 per cent share.

The mar­ket share was cal­cu­lated in phys­i­cal terms (on the ba­sis of ca­pac­ity and not value of equip­ment). Fur­ther, the two broad pack­ages (boil­ers and tur­bine-gen­er­a­tors) were given equal weight while cal­cu­lat­ing the mar­ket share. When this study was com­pleted, NTPC had fi­nal­ized or­ders for 31 su­per­crit­i­cal power units that in­cluded 22 of 660-mw rat­ing and 9 of 800-mw rat­ing. The to­tal ca­pac­ity for which equip­ment was or­dered was 43,440 mw, com­pris­ing boil­ers worth 21,720 mw and tur­bine-gen­er­a­tors of the same ca­pac­ity. BHEL, con­sid­er­ing both boil­ers and TG sets, won or­ders for 16,020 mw of equip­ment, im­ply­ing a mar­ket share of 36.9 per cent.

NTPC em­barked on its su­per­crit­i­cal jour­ney in 2004-05 when it planned the Si­pat (Stage 1 of 3x660-mw) and Barh (Stage 1 of 3x660-mw) projects. BHEL at that time was build­ing com­pe­tence in the su­per­crit­i­cal tech­nol­ogy. Due to some de­lay in BHEL equip­ping it­self with the re­quired tech­nol­ogy, NTPC had to place or­ders on for­eign sup­pli­ers that in­cluded Techno­prom­ex­port and OJSC Power Ma­chines (both Rus­sia) and Doosan (Korea). In fact, BHEL was ready with the tech­nol­ogy when Barh Stage 2 of 2x660-mw came up for award.

NTPC be­gan seek­ing su­per­crit­i­cal

power equip­ment on a se­ri­ous note from around 2010. It floated a mega ten­der re­lat­ing to nine projects ag­gre­gat­ing 7,260 mw that also in­cluded one project on be­half of Damodar Val­ley Cor­po­ra­tion. This ten­der was the first big push for su­per­crit­i­cal power equip­ment in In­dia — not just for BHEL but also for new en­trants in the su­per­crit­i­cal equip­ment in­dus­try. It may be men­tioned that a new crop of su­per­crit­i­cal power equip­ment sup­pli­ers has emerged in re­cent years. These in­clude BGR En­ergy (in as­so­ci­a­tion with Hi­tachi), Larsen & Toubro (team­ing up with Mit­subishi), JSW En­ergy (with Toshiba) and Bharat Forge (ty­ing up with Al­stom). Doosan Heavy In­dus­tries is the only com­pany that is go­ing solo. All these sup­pli­ers are eye­ing the grow­ing su­per­crit­i­cal power equip­ment mar­ket and are ready­ing them­selves with a lo­cal man­u­fac­tur­ing base.

NTPC’s mega ten­der, which in­ci­den­tally took some time to fi­nal­ize pend­ing tech­ni­cal mat­ters, was fol­lowed up by sev­eral other projects for which NTPC sought equip­ment. It is very in­ter­est­ing to ob­serve that no Chi­nese sup­plier qual­i­fied for sup­ply­ing to NTPC as the In­dian power util­ity man­dated that sup­pli­ers would need to cre­ate a man­u­fac­tur­ing fa­cil­ity in In­dia.

Finer de­tails: For NTPC, BHEL has so far been man­dated to sup­ply 23 el­e­ments, which in­clude 10 boil­ers of 660-mw and four of 800-mw, seven TG sets of 660-mw and two of 800-mw. Doosan, the sec­ond most suc­cess­ful sup­plier, has been con­tracted to sup­ply eight boil­ers (three of 660-mw and five of 800-mw). This Korean sup­plier is fo­cus­ing only on the boiler mar­ket for su­per­crit­i­cal power plants. Rus­sian sup­pli­ers OSJC Power Ma­chines and Techno­prom­ex­port did not par­tic­i­pate in re­cent ten­ders of NTPC as they did not in­tend to set up a lo­cal man­u­fac­tur­ing base.

The joint ven­ture of JSW and Toshiba – Toshiba JSW Power Sys­tems Pvt Ltd – has won or­ders for seven TG sets that in­clude five of the 800-mw class. In­ci­den­tally, the JV is only ad­dress­ing the tur­bine-gen­er­a­tor mar­ket and not that of boil­ers (steam gen­er­a­tors). The JV be­tween L&T and Mit­subishi has been the least suc­cess­ful with re­spect to NTPC. It has won just one or­der – that of sup­ply­ing two boil­ers of 660-mw for NTPC’s Tanda power project in Ut­tar Pradesh. L&T and Mit­subishi have formed two joint ven­tures – one each of boil­ers and TG sets. It may be men­tioned that de­spite be­ing least suc­cess­ful with re­spect to NTPC, the L&T-Mit­subishi al­liance has won or­ders from pri­vate sec­tor play­ers.

The JV of BGR and Hi­tachi had won the man­date for sup­ply­ing TG sets for the 2x800-mw Dar­li­palli project in Orissa. How­ever, there was much de­lay on part of NTPC in se­cur­ing manda­tory clear­ances, which de­layed project mo­bi­liza­tion. BGR-Hi­tachi with­drew from the project due to this de­lay. The equip­ment was re-ten­dered

and the man­date fi­nally went in favour of the Toshiba-JSW com­bine. NTPC had more trou­ble in Orissa. It had planned to set up a 2x800-mw project at Ga­ja­mara in Dhenkanal district. As it faced much de­lay in ac­quir­ing land and se­cur­ing clear­ances, NTPC shifted the project to Gadar­wara in Mad­hya Pradesh.

Vi­sion: NTPC’s cur­rent in­stalled ca­pac­ity is 42,454 mw that in­cludes power plants wholly owned or set up in joint ven­tures. Though NTPC is pre­dom­i­nantly a ther­mal power com­pany, it also has hy­dropower and re­new­able en­ergy plants. All its fu­ture ther­mal power plants will be based on su­per­crit­i­cal power tech­nol­ogy. NTPC has tar­geted to have a to­tal ca­pac­ity of 65,000 mw, as against 75,000 mw planned ear­lier. By 2032, NTPC aims to have a power port­fo­lio of 1,28,000 mw.

Su­per­crit­i­cal tech­nol­ogy, and later ad­vanced su­per­crit­i­cal tech­nol­ogy, is the way for­ward for In­dia. The Cen­tral govern­ment has es­ti­mated that in the on­go­ing XII Plan pe­riod, around 60 per cent of the new coal-based power ca­pac­ity com­ing up in In­dia will be based on su­per­crit­i­cal tech­nol­ogy whereas in the XIII Plan pe­riod (FY18 to FY22), all the up­com­ing coal-fired power plants will run on su­per­crit­i­cal power tech­nol­ogy.

NTPC-BHEL: It is in­ter­est­ing to note that NTPC and BHEL have formed a joint ven­ture NTPC-BHEL Power Projects Pvt Ltd (NBPPL) to act as an EPC con­trac­tor for power plants and also to man­u­fac­ture power equip­ment.

The orig­i­nal busi­ness plan was to set up a man­u­fac­tur­ing plant for bal­ance of plant (BOP) equip­ment and pur­chase EPC equip­ment in the first phase with a project cost of Rs.12 bil­lion. The sec­ond phase en­vi­sioned a man­u­fac­tur­ing plant for boiler tur­bine gen­er­a­tor at a project cost of Rs.48 bil­lion.

While the com­pany has de­ferred phase 2 due to slug­gish mar­ket con­di­tions, project cost for Phase-1 has been re­duced to Rs.3.6 bil­lion by dis­card­ing the plan to pur­chase EPC equip­ment. In the re­vised Phase 1, the com­pany is set­ting up a man­u­fac­tur­ing unit for BOP equip­ment such as coal han­dling plantsa (CHP) and ash han­dling plants (AHP) in Man­navaram, Andhra Pradesh. The com­pany has en­tered into a tech­ni­cal col­lab­o­ra­tion with Dear­born Mid­west Con­veyor Com­pany Inc for CHPs, but has yet to iden­tify a tech­nol­ogy part­ner for AHP.

Re­cently, the com­pany has been awarded a com­plete EPC con­tract worth Rs.2,219 crore from NTPC re­lat­ing to the 1x500-mw Feroze Gandhi Un­cha­har ther­mal power project in Ut­tar Pradesh. In­dus­try sources in­di­cate that NBPPL will fo­cus on bal­ance of plant con­tracts. In terms of EPC con­tracts, the com­pany would pur­sue or­ders re­lat­ing to power plants us­ing sub­crit­i­cal tech­nol­ogy.

UK-based Perkins is a group com­pany of Cater­pil­lar Inc. Perkins has been in In­dia for close to 30 years now and has been sup­ply­ing en­gines for gen­er­a­tors and power backup. Pankaj Jha tells us more on how Perkins has been far­ing in In­dia and what its fu­ture plans are. Jha is up­beat on the prospects for his com­pany af­ter the un­der-con­struc­tion Au­rangabad man­u­fac­tur­ing fa­cil­ity is set to bring Perkins even closer to the grow­ing In­dian mar­ket.

We con­tinue to fo­cus on prod­uct de­vel­op­ment across our range

Tell us about the cur­rent sta­tus of your up­com­ing man­u­fac­tur­ing fa­cil­ity at Au­rangabad in Ma­ha­rash­tra. Do you also in­tend to use the fa­cil­ity for ex­ports? The man­u­fac­tur­ing fa­cil­ity is lo­cated in the Shen­dra In­dus­trial Area in Au­rangabad; one of the fastest grow­ing cities in the world. Con­struc­tion work is cur­rently un­der­way at the 120,000 sqm site to cre­ate a 40,000sqm man­u­fac­tur­ing fa­cil­ity which will pro­duce our largest and most pow­er­ful range of en­gines, the Perkins® 4000 Se­ries.

The fa­cil­ity will ini­tially have the ca­pac­ity to pro­duce around 3,000 4000 Se­ries en­gines per year, with the ca­pa­bil­ity to in­crease to 5,000 units in the fu­ture.

In ad­di­tion to on­go­ing work at the fa­cil­ity, we have con­tin­ued

— Pankaj Jha, South Asia Mar­ket­ing Man­ager, Perkins

to fo­cus on our people. Our key ap­point­ments have al­ready been made, as we work to es­tab­lish a strong team in In­dia to meet our cus­tomer re­quire­ments.

The Au­rangabad fa­cil­ity will also serve our elec­tric power cus­tomers in China and the wider Asian re­gion with a range of de­pend­able, qual­ity en­gines which deliver a life­time of low cost. It will en­able us to bet­ter meet the de­mand for the 4000 Se­ries from the In­dian and Asian mar­kets by short­en­ing lead times and help­ing us forge even closer ties with our val­ued cus­tomers.

What is your take on the cur­rent in­dus­trial slow­down in In­dia? Has it re­sulted in de­pressed de­mand for en­gines, es­pe­cially from the in­dus­trial and con­struc­tion sec­tor? In con­junc­tion with our dis­tri­bu­tion part­ners in In­dia, GMMCO Power and Pow­er­parts Pvt Ltd, we at Perkins have been work­ing closely with many businesses and gen­er­a­tor set man­u­fac­tur­ers, to pro­vide the best and most ap­pro­pri­ate power so­lu­tions for a rapidly chang­ing mar­ket place that is con­tribut­ing sig­nif­i­cantly to a pos­i­tive fu­ture for In­dia. Peak power short­ages across the coun­try and the busi­ness de­vel­op­ment that is be­ing seen, is driv­ing the con­tin­ued de­mand for gen­er­a­tor sets as a source of prime and backup power.

At Perkins our main fo­cus is the elec­tric power sec­tor in In­dia, specif­i­cally the less than 750 kVA mar­ket, which is sup­ported by our range of elec­tric power en­gines from the 400 Se­ries up to the most pow­er­ful 4000 Se­ries of­fer­ing. In this

power range the mar­ket for gen­er­a­tor sets has re­mained sta­ble.

With fuel (diesel prices) slowly mov­ing out of govern­ment sub­sidy, what im­pact do you see on use of diesel gen­er­a­tors for power backup? How would you (or do you) en­sure cost ef­fi­ciency of your en­gines? We con­tinue to fo­cus on prod­uct de­vel­op­ment across our range, with our lat­est en­gines de­liv­er­ing im­proved power den­sity and load ac­cep­tance, mean­ing the cus­tomer can of­ten down­size while still achiev­ing out­puts nor­mally as­so­ci­ated with much big­ger dis­place­ment en­gines. This leads to re­duced op­er­at­ing costs while of­fer­ing a space sav­ing op­por­tu­nity dur­ing in­stal­la­tion.

De­signed with our cus­tomers’ re­quire­ments in mind, our 4000 Se­ries en­gines have com­mon com­po­nents to re­duce in­ven­tory and ben­e­fit from dig­i­tal gov­ern­ing to con­trol fuel con­sump­tion and im­proved load ac­cep­tance. To en­sure our cus­tomers ben­e­fit from cost ef­fec­tive so­lu­tions, our en­gines have good ser­vice ac­cess, a one-year war­ranty and 500 hour ser­vice in­ter­vals, cou­pled with an un­ri­valled level of sup­port from the Perkins prod­uct sup­port net­work.

In this con­text, we learn that you have worked on cre­at­ing cost ef­fi­ciency in the Perkins 4016 model. Tell us more. The largest and most pow­er­ful en­gine range of­fered by Perkins is the 4000 Se­ries, which de­liv­ers both prime and standby power, cou­pled with the per­for­mance, dura­bil­ity and low op­er­at­ing costs our cus­tomers’ re­quire.

We work closely with our cus­tomers, fo­cus­ing on the best way to in­te­grate our en­gines into their ap­pli­ca­tions to deliver the best so­lu­tion for the OEM and end user. A good ex­am­ple is our 4016 range, where we lis­tened to our cus­tomers and de­liv­ered 10 per­cent more power from the en­gine, com­pared to its pre­de­ces­sor. This was achieved while main­tain­ing the same pack­age size, thereby in­creas­ing the power den­sity (kVA/litre).

The ex­ist­ing cool­ing pack was also main­tained as we moved to an air to wa­ter charge cooled sys­tem which it­self, of­fers greater flex­i­bil­ity as it can be lo­cated re­motely — ideal if the in­stal­la­tion is in a com­pact en­vi­ron­ment. Also, given the of­ten oner­ous con­di­tions in which gen­er­a­tor sets op­er­ate, one of Perkins ob­jec­tives was to en­sure that peak per­for­mance was main­tained. These are the cri­te­ria which ap­peal to gen­er­a­tor set pack­agers as they seek to sell their prod­ucts to cus­tomers who are look­ing for max­i­mum per­for­mance with min­i­mum out­lay.

In ad­di­tion to the cus­tomer ben­e­fits de­liv­ered by the 4000 Se­ries, cus­tomers can rest as­sured that the en­gine is sup­ported by our global prod­uct sup­port net­work of 100 dis­trib­u­tors op­er­at­ing in 180 coun­tries.

Do you feel that diesel might be re­placed by gas or even per­haps re­new­able en­ergy sources in gen­er­a­tors? To date, In­dia has tra­di­tion­ally re­lied on fos­sil fu­els to gen­er­ate much of its power and while this is still the case, bio fu­els and other forms of nat­u­ral gas are also grow­ing in im­por­tance.

At Perkins our main fo­cus is the less than 750kVA mar­ket, which is sup­ported by our range of elec­tric power diesel en­gines from the 400 Se­ries up to the most pow­er­ful 4000 Se­ries of­fer­ing. In this power range the mar­ket for gen­er­a­tor sets has re­mained sta­ble.

As a global busi­ness, we do of­fer our cus­tomers ac­cess to a range of de­pend­able diesel and gas en­gines, tai­lored to meet their spe­cific power re­quire­ments depend­ing on coun­try and ap­pli­ca­tion.

We have al­ready ap­pointed six 4000 Se­ries Gas Cen­tres of Ex­cel­lence cov­er­ing Europe, the Mid­dle East, China and North Amer­ica, to en­sure we are fully sup­port­ing our cus­tomers with their gas re­quire­ments, in ter­ri­tory. To sup­port our gas cus­tomers in In­dia we have two ex­ist­ing Perkins Gas Part­ners, namely Power En­gi­neer­ing and Ster­ling. A Gas Part­ner is a di­rect OEM cus­tomer of Perkins, ap­proved to pack­age and sup­port our large gas-based en­gines.

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