Electrical Monitor :: BHEL most successful in NTPCs supercritical orders

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BHEL m ost successfulin NTPCs supercriticalorders

EM News Bureau ,

Sunday, April 06, 2014, 15:06 Hrs [IST]

International

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 NTPCs 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.

Green Energy

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.

Misses being Indias first

The first supercritical unit of NTPC to commission was the 3x660mw Sipat (Stage 1). The milestone was reached in June 2011,
with equipment supplied by international suppliers -- Doosan of
Korea (boilers) and OJSC Power Machines of Russia (turbine
generators). The second and third units of Sipat (Stage 1) were
commissioned in December 2011 and June 2012, respectively.
It was widely believed that NTPC's Sipat-Stage I, with orders for
main plant equipment placed way back in 2004, would be India's
first supercritical power project to turn operational. However, the
project was fraught with unexpected delays resulting from alleged
poor performance of the equipment suppliers. Adani Group's
Mundra power project in Gujarat is India's first supercritical power
project to turn operational. The first unit of the 2x660-mw Mundra
(Stage II) project was synchronized in December 2010 while the
second reached the same milestone in early June 2011. Sepco-III
of China was contracted to supply the main plant package. So far,
Adani has commissioned ten supercritical units (each of 660-mw)
at different locations including Mundra (Gujarat), Kawai
(Rajasthan) and Tiroda (Maharashtra). All the units have been
supplied by Chinese suppliers.

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 It is interesting to note that despite the overall antagonism to
tender was the first big push for Chinese equipment, the first supercritical power unit to go
supercritical power equipment in India operational was supplied by China.
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.
NTPCs 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.
Suppliers to NTPC projects
Company

Capacity

Market

(MW)

share (%)

Alstom+Bharat Forge

4,620

10.6

BGR+Hitachi

4,240

9.8

BHEL

16,020

36.9

Doosan

5,980

13.8

L&T+Mitsubishi

1,320

3.0

OJSC Power Machines, Russia

3,960

9.1

Technopromexport, Russia

1,980

4.6

Toshiba+JSW

5,320

12.2

Total

43,440

100.0

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

http://www.electricalmonitor.com/ArticleDetails.aspx?aid=1894&sid=12

1/19/2015

Electrical Monitor :: BHEL most successful in NTPCs supercritical orders

Page 2 of 3

successful with respect to NTPC. It has won just one order that of supplying two boilers of 660-mw for
NTPCs 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 retendered 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.
Supercritical capacity
As of mid-March 2014, India had 13,900 mw worth of supercritical
units commissioned. While NTPC's 3x660-mw Sipat-I is the lone
project in the public sector, the rest have been commissioned by
the private sector. Adani Power has commissioned the maximum
of 6,600 mw of supercritical power capacity represented by ten
units of 660-mw each. Supplied entirely by Chinese company
Sepco-III, the units are located at Adani Power's plants at Mundra
(Gujarat), Tiroda (Maharashtra) and Kawai (Rajasthan). Tata
Power has commissioned the 4,000-mw Mundra ultra mega power
project in Gujarat. This plant has India's only 800-mw coal-fired
units so far. Meanwhile, Reliance Power is in the process of
commissioning its 6x660-mw Sasan UMPP in Madhya Pradesh.
So far, two have been commissioned while the boiler light-up of
the third is currently in progress.

Vision: NTPCs 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 coalbased 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.
Supercritical Power Projects of NTPC*
Project
Barh Stage 1

State

Capacity
(mw)

Boiler

TG Set

BIH

3 x 660

Technopromexport, Russia

OJSC Power Machines, Russia

Barh Stage 2

BIH

2 x 660

BHEL

BHEL

Darlipalli

ORI

2 x 800

BHEL

Toshiba+JSW***

Gadarwara

MP

2 x 800

BHEL

BHEL

Kudgi

KAR

3 x 800

Doosan

Toshiba+JSW
BGR+Hitachi

Lara

CHH

2 x 800

Doosan

Mauda

MAH

2 x 660

BHEL

BHEL

UP

2 x 660

BGR+Hitachi

Toshiba+JSW
Alstom+Bharat Forge

Meja
Nabinagar

BIH

3 x 660

BHEL

North Karanpura

BIH

3 x 660

BHEL

BHEL

Sipat Stage 1

CHH

3 x 660

Doosan

OJSC Power Machines, Russia

Solapur

MAH

2 x 660

BGR+Hitachi

Alstom+Bharat Forge

UP

2 x 660

L&T+Mitsubishi

Alstom+Bharat Forge

Tanda

*Projects where BTG orders have been finalized, as of mid-March 2014; List may not be exhaustive
***Re-tendered, old order on BGR-Hitachi was cancelled
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 plants (CHP) and
ash handling plants (AHP) in Mannavaram, Andhra Pradesh. The company has entered into a technical
collaboration with Dearborn Mid-west 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 mainly on balance of plant contracts. In terms of EPC contracts, the company
would pursue orders relating to power plants using subcritical technology.
Global players in Indian supercritical equipment market
Company

Indian Partner

Equipment

Plant Location

---

Chennai, TN

L&T

B, TG

Hazira, GUJ

Alstom

Bharat Forge

TG

Sanand, GUJ

Hitachi

BGR Energy

B, TG

Chennai, TN

Toshiba

JSW Group

TG

Chennai, TN

Doosan
Mitsubishi

Note: B=Boilers, TG=Turbine-Generators

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http://www.electricalmonitor.com/ArticleDetails.aspx?aid=1894&sid=12

1/19/2015