CONFERENCE

ON
BALANCE OF PLANT SYSTEMS
CENTRAL ELECTRICITY AUTHORITY
- 18
TH
MAY 2011-
MARKET SCENARIO BALANCE OF PLANT
SEGMENT
BoPs HAVE BEEN AND CONTINUE TO BE CRITICAL
AREA FOR ACHIEVING CAPACITY ADDITION TARGETS
10
TH
PLAN THERMALTARGET/ACHIEVED 25417 MW/12114 MW
11
TH
PLAN THERMALTARGET/ACHIEVED SO FAR 50756 MW/30496 MW
IN RECENT PAST, MANY UNITS FAILED TO ACHIEVE
FULL LOAD IN TIME DUE TO NON AVAILABILITY OF
BoP SYSTEM, ESPECIALLY, SUCH AS CHP, AHP, CW
SYSTEM ETC.
ADDITIONAL AND EXCLUSIVE DELAYS DUE TO BoPs IS
A COMMON PHENOMENON
contd.---
HUGE CAPACITY ADDITION PROGRAMME ENVISAGED FOR
12
TH
PLAN & BEYOND.
FOR MONITORED UNDER CONSTRUCTION CAPACITY OF ABOUT
67000 MW OF 12
TH
PLAN MOST OF THE BoP ORDERS HAVE BEEN
PLACED
HOWEVER, ORDERS FOR MANY 12
TH
PLAN AND 13
TH
PLAN
PROJECTS ARE STILL TO BE AWARDED
GAP EXISTS BETWEEN AVAILABILITY & REQUIREMENT OF
QUALIFIED BoP VENDORS AND THEIR IMPLEMENTATION
CAPACITY
IN SOME SYSTEMS, THERE IS SEVERE BUNCHING OF ORDERS
WITH FEW VENDORS.
THUS SIGNIFICANT MARKET POTENTIAL EXISTS FOR
CAPACITY ENHANCEMENT OF EXISTING VENDORS AND
DEVELOPMENT OF NEW VENDORS
MARKET SCENARIO BALANCE OF PLANT
SEGMENT
REQUIREMENT OF MAJOR BALANCE OF
PLANTS FOR 12
TH
PLAN THERMAL POWER
PROJECTS
S.No. NAME OF MAJOR
BoPs
NO. OF
BoPs
REQUIRED
NO. OF
BoPs
ORDERED
NO. OF
BoPs TO BE
ORDERED
1. COAL HANDLING
PLANT
64 60 4
2. ASH HANDLING
PLANT
64 60 4
3. COOLING TOWER 121 118 3
4. CHIMNEY 76 74 2
5. FUEL OIL SYSTEM 64 59 5
6. DM PLANT 67 62 5
7. PT PLANT 67 62 5
S.No. VENDOR NAME NO. OF PROJECTS
1. TECPRO SYSTEMS 14
2. L&T 7
3. TRF/ MECAWBER BEEKAY 6
4. MACNELLY BHARAT 3
5. FL SMIDTH 3
6. CHINESE COMPANY 3
7. GDCL 3
8. MBECL 2
9. MECMET INDIA/ ELECON 1
10. ENERGO 1
11. HYQUIP SYSTEMS 1
12. BSBK ENGINEER PVT. LTD. 1
13. LANCO INFRA 1
14. SUNIL HITECH 1
15. SEPCO 1
16. SHREE CONVEYOR SYSTEMS 1
17. THYSSEN KRUPP INDUSTRIES 1
TOTAL 50
COAL HANDLING PLANT
S.No. VENDOR NAME NO. OF PROJECTS
1. MACAWBER BEEKAY 9
2. INDURE 8
3. BSBK ENGINEER PVT. LTD. 5
4. TECHPRO 5
5. MBECL 3
6. MACNELLY BHARAT 3
7. OSM ENGINERING 3
8. DCI PS LTD. 3
9. MECGALE PNEUMATICS 3
10. MAHENDRA ASHTECH 1
11. RAMKY INFRA 1
12. LANCO INFRA 1
13. SUNIL HITECH 1
14. ENERGO 1
TOTAL 47
ASH HANDLING PLANT
S.No. VENDOR NAME NO. OF PROJECTS
1. PAHARPUR 28
2. GAMMON 6
3. SPIG COOLING TOWERS 4
4. HAMON SRIRAM COTTRELL 3
5. NBCC 3
6. LANCO INFRA 2
7. TECHPRO 1
8. GEA, CHENNAI 1
9. BGR 1
10. GACTEL TRUNKEY PROJECT 1
11. TECORI SYSTEMS 1
12. JMC 1
TOTAL 52
COOLING TOWER
INITIATIVES TAKEN SO FAR
COMMITTEE CONSTITUED IN 2008 FOR DEVELOPMENT OF
VENDORS FOR BALANCE OF PLANT UNDER THE
CHAIRMANSHIP OF MEMBER (ENERGY), PLANNING COMMISSION
WITH CHAIRPERSON, CEA AND MEMBER SECRETARY, NMCC AS
MEMBERS
RECOMMENDATIONS INCLUDE
ORDERS FOR BoPs (OR EPC OF BoPs) SHOULD BE PLACED
WITHIN SIX MONTHS OF MAIN PLANT ORDER
LD FOR DELAYS TO BE ENHANCED
TO REVIEW PRE-QUALIFICATION REQUIREMENTS
CEA TO PREPARE BROAD DESIGN CRITERIA
CAPACITY BUILDING FOR AVAILABILITY OF SKILLED
MANPOWER TO BE TAKEN UP BY PROJECT DEVELOPER
TO EXAMINE WHETHER A LEVEL PLAYING FIELD IS PROVIDED
TO DOMESTIC SUPPLIERS
contd.---
INTERACTION HELD WITH INDUSTRY IN JULY 2007 DURING
THE INTERNATIONAL CONCLAVE ON KEY INPUTS FOR 11TH
PLAN AND BEYOND
ISSUES THAT EMERGED INCLUDE
SLOW PROCESS OF DECISION MAKING BY UTILITIES AND
CUMBERSOME PAYMENT PROCEDURES AFFECTING CASH FLOW
STRINGENT QUALIFYING REQUIREMENTS ACTING AS DETERRANT
FOR NEW PLAYERS
THE FOLLOWING ACTIONS WERE SUGGESTED
TO HAVE MORE TRUST ON REPUTED SUPPLIERS AND PROCESS
OF SELF TESTING BY SUPPLIERS TO BE ENCOURAGED
PAYMENT PROCEDURES SHOULD BE SIMPLIFIED
TO HAVE RELOOK AT THE QUALIFYING REQUIREMENTS TO
ENCOURAGE NEW ENTRANTS
INITIATIVES TAKEN SO FAR
contd.---
INTERNATIONAL CONCLAVE HELD IN OCTOBER 2009 TO
ASSESS KEY INPUTS FOR 12
TH
PLAN
THE FOLLOWING RECOMMENDATIONS WERE MADE IN
RESPECT OF BoPs
ORDERS FOR BoPs SHOULD BE PLACED DULY CONSIDERING THE
MANUFACTURING CAPACITY OF THE VENDORS
BONUS/PENALTY SYSTEM FOR EARLY/LATE DELIVERY OF BoP
EQUIPMENTS
EXISTING BoP VENDORS TO DIVERSIFY INTO OTHER FIELDS OF
BoPs
INTRODUCTION OF NEW TECHNOLOGY SYSTEM IN BoP
PARTICULARLY COAL AND ASH HANDLING PLANT
WATER TREATMENT PLANT SPECIFICATION TO BE
STANDARDISED
INITIATIVES TAKEN SO FAR
RESULTS ACHIEVED/ACTION TAKEN
SO FAR
PRE-QUALIFYING REQUIREMENTS FOR BoPs HAVE BEEN
REVIEWED AND MODIFIED FOR SUGGESTED ADOPTION BY
THE DEVELOPERS
FEW NEW VENDORS/EPC CONTRACTORS HAVE EMERGED AND
CAPACITY ENHANCED BY EXISTING VENDORS
NEW JOINT VENDORS(NBPPL) HAVE BEEEN FORMED BETWEEN
NTPC AND BHEL TO PROVIDE BoP SYSTEM ALSO
STANDARD DESIGN CRITERIA/GUIDELINES FOR BALANCE OF
PLANT HAVE BEEN PREPARED IN SEPTEMBER 2010 AFTER
TAKING INTO CONSIDERATION VIEWS OF UTILITIES, BoP
MANUFACTURERS, CONSULTANTS & EPC CONTRACTORS
SOME IMPROVEMENT IN TIMELY PLACEMENT OF ORDER
COMMITTEE CONSTITUTED TO LOOK IN TO THE ASPECTS OF
LIQUIDATED DAMAGES FOR DELAY IN SUPPLIES/EXECUTION
ISSUES/AREAS OF CONCERN
CONTRACTING PROCESS
CAPACITY ASSESSMENT
EVALUATION CRITERIA
CAPACITY FLEXIBLE AS MANY VENDORS OUTSOURCE
SUPPLIES/VARIOUS WORKS
PACKAGING EPC OR INDIVIDUAL PACKAGES
CONFIDENCE IN NEW VENDORS TO DELIVER
VENDORS NOT EXCLUSIVE TO POWER PLANTS CATER TO OTHER
SECTORS AS WELL
STREAMLINING PAYMENT PROCEDURES/TIMELY PAYMENT
ACCOUNTING FOR COST COMPENSATION FOR SCOPE VARIATION,
DELAYS DUE TO FACTORS OTHER THAN THE VENDOR
EXTENT OF LIQUIDATED DAMAGES
contd.---
IMPLEMENTATION PHASE
EARLY FINALISATION OF EXECUTING AGENCIES
EARLY START OF WORKS
ACCESS TO SITE
MOBILISATION OF WORK FORCE AND CONSTRUCTION MACHINERY
IDENTIFY CONTROL POINTS FOR TIMELY COMPLETION
INTERFACE ISSUES WITH MAIN PLANT EQUIPMENT AND OTHER
VENDORS
AGGRESSIVE PROJECT MANAGEMENT/LATE FOCUS ON
BoPS
--- ISSUES/AREAS OF CONCERN
WAY FORWARD
NEED FOR TIMELY PLACEMENT OF ORDERS AND
FACILITATING EARLY START OF WORK AFTER THOROUGH
ASSESSMENT OF THEIR IMPLEMENTATION CAPACITY
TO AVOID BUNCHING OF ORDERS
BoPs TO MATCH THE SCHEDULES OF MAIN PLANT FOR THEIR
VARIOUS INTERMEDIATE MILESTONES SUCH AS HYDRO TEST,
BOILER LIGHT UP, STEAM BLOWING, COAL FIRING,
SYNCHRONISATION, FULL LOAD AND COD
NEED FOR INTEGRATED PLANNING FOR PROPER COORDINATION
AMONG MAIN PLANT SUPPLIERS, BoP VENDORS AND PROJECT
DEVELOPERS
TO DEVELOP NEW VENDORS
BIG VENDORS/EPC VENDORS/INTEGRATORS TO HAVE HAND
HOLDING IN THE INITIAL STAGES BY WAY OF PROVIDING
MANAGEMENT EXPERIENCE AND/OR TECHNOLOGY TRANSFER
TO HAVE ROBUST CONTRACTS WITH WELL DEFINED
DELIVERABLES INBUILT WITH INCENTIVES/PENALTIES
Thank You