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India sets performance norms for power equipment making

The Indian government has put out performance norms for power equipment manufacturers, which are effective from August 20.

The new norms the Central Electricity Authority (Technical Standards for Construction of Electrical Plants and Electric Lines) Regulations 2010 are part of the demands of the domestic power equipment manufacturers such as public sector BHEL, L&T and Bharat Forge.

The new standards underline strict technical norms on the gross heat rate, design head, hot start and gross turbine cycle heat rate.

Domestic suppliers, along with the ministry of heavy industries, have lately been asking for a level playing field against cheaper Chinese imports. Besides, performance standards, they are also looking for a safeguard duty amounting to 14%.

On the other hand, the Power Ministry argues that a safeguard duty on Chinese imports will push up the overall project cost and may add to delays in implementation.

A top official in the heavy industries ministry told Business Line, "This is the first battle won by the domestic industry, but the bigger issue of safeguard duty remains. We wanted the performance standards to prevail over existing orders that were yet to be executed, but it will only be for new supply."

The official added that "The Indian power sector will be held hostage if the Chinese equipment fails as there no assurances of proper maintenance and availability of spares. The Chinese have cornered 50,000 MW order from the 11th and 12th plan and a balance of only 25,000 MW is left for the domestic players who are making huge investments in capacity."

(Sourced from BL)