Despite BHEL’s big plans to lead the expansion of India’s power capacity in the next five years, company executives along with government officials admitted that foreign companies might play a significant role in the country’s attempt to meet the target. In its agenda for 100 days, the Ministry of Heavy Industries declared that the navratna public sector undertaking BHEL would target building infrastructure that is capable of reaching a minimum capacity of 12,000 MW of power in the current financial year while pushing its capacity to 20,000 MW by 2012.

Heavy industries and public enterprises minister Vilasrao Deshmukh also indicated that BHEL could be up for 10 per cent disinvestment this fiscal. However, plans for disinvestment are only “under consideration,” with no definitive decisions. The disinvestment plan was initially shelved after the UPA faced opposition from the Left Parties in its previous term.

Ravi Kumar, chairman and managing director of BHEL, said he had not been informed of any plans of disinvestment in BHEL. “I have not heard of any disinvestment. We have no role in that. It is the government’s prerogative.”

Although BHEL is leading the charge for electrical modernisation among Indian organisations, they are leaning on foreign companies. BHEL already has technology agreements with French company Alstom for supercritical boilers and Siemens of Germany for supercritical generators.

“We are openly saying that 78,000 MW cannot be met by BHEL alone. Even with our expansion, there will be different players,” said a BHEL spokesperson who did not wish to be named.

... contd.