Engineering major and consultant in the hydrocarbon sector Engineers India Ltd (EIL) is aiming to bag execution and integration jobs in power projects.
Till now, EIL was taking such contracts only in captive power plants, not greenfield projects.
Now, EIL is looking at cashing in on delays in projects handled by public sector equipment maker Bharat Heavy Electricals Ltd (BHEL). Design engineering, civil work, integration and electrical works are the areas where BHEL is said to have lagged in delivering within deadlines.
“Earlier, everything was being done by BHEL. Their strength is in supplies and manufacturing capabilities. The delays are happening in integration and in some projects, we are considering taking up that activity,” A.K. Purwaha, Chairman and Managing Director of EIL, told
Purwaha said in these kind of jobs, the equipment would come from the manufacturers. “We can handle the execution part. Gujarat State Petroleum Corporation is one such first project that we have taken up,” he added.
However, EIL will not go ahead to grab engineering, procurement and construction (EPC) contracts because it is not into manufacturing of boiler-turbine-generators (BTG). The BTG package comprises about 60-70 per cent value in a power project.
To get projects, EIL said it would rather negotiate with the contractor and promoter of a project for the execution job. “Instead of getting the whole thing completed on a turnkey basis from the equipment manufactures or the packagers, EIL can take supply from them and then put up the plant,” Purwaha said.
BHEL has been flayed by several companies, including ONGC, for delay in commissioning of projects.