Alstom Bharat Forge Power Ltd. (ABFPL), the joint venture between France’s Alstom and Kalyani Group’s Bharat Forge, aims to start production of power equipment from its alternate site in Sanand, Gujarat, by February 2015.
ABFPL had decided to shift the project to an alternate site after the original location, the Mundra special economic zone promoted by the Adani Group, was denied environmental clearance.
“The Mundra site had run into problems about a year ago because Adani had not received environmental clearance. But, the location continues to remain with us. We have fast-tracked an alternative location in Sanand and construction has already started. Both partners are investing around Rs 1,800 crore in the plant,” said Sunil Chaturvedi, Executive Director and Chief Operating Officer of Bharat Forge, speaking to
Power Ventures
Alstom and Bharat Forge have two joint ventures. While ABFPL will manufacture supercritical turbines and generators, Kalyani Alstom Power Ltd will make ancillary equipment such as heaters used with turbines and generators.
At present, the focus is on ABFPL, which has bagged orders worth around Rs 4,500 crore.
In February, it secured an order for nearly €350 million (Rs 2,710 crore) to supply three units of 660 MW supercritical coal turbine islands to Nabinagar power station, an NTPC and Bihar State Electricity Board project. Other orders are for an upcoming power plant in Solapur, Maharashtra. Asked if the company would be able to deliver the orders on time, Chaturvedi said, “All machinery for the Sanand plant has been ordered. We are expecting the plant to be completely commissioned by February 2015. We are fully compliant with NTPC’s phased manufacturing programme.”
Heat exchangers and condensers will start getting delivered 14-15 months from now. Turbines would be delivered in two years, he added.
Alstom and Bharat Forge are yet to decide if they want to manufacture ancillary equipment under the second joint venture, Kalyani Alstom Power.
According to Chaturvedi, the equipment can be sourced cheaper from the market than by manufacturing.
If clearances come through, Kalyani Alstom plans to use the Mundra site in the second phase, to make nuclear power equipment.
Nuclear option
Nuclear turbines are larger in size than conventional thermal turbines. This is because nuclear turbines rotate at nearly half the speed of a thermal power generating turbine.
Therefore, a bigger space is required to manufacture equipment for nuclear power generation.
With the Government pushing reforms in the power sector, companies are looking to bag new orders.
In the past two years, bulk tendering by power developers fell drastically because of uncertainties and a fund crunch in the power sector.
“We are looking to bag another three-four project orders this year,” said Chaturvedi.