Saturday, 10 January 2015

Rs 1 lakh-crore orders soon for power, mining equipment: Piyush Goyal

NEW DELHI: The power and coal sectors will shortly issue orders worth over Rs 1 lakh crore for various projects, including four new giant power projects, Piyush Goyal, Union minister of coal, power and renewable energy, has said. The orders will also include mining operations and energy efficiency equipment.

"There are lot of things that have gone through various processesand will now start," Goyal said at the Economic Times Power Focus Summit on Friday.

This will be a big boost for equipment suppliers and other companies that have been starved of orders due to the economic slowdown. "NTPC is going to double its generation capacity, little more than double. Energy Efficiency Service Ltd is going to buy at least Rs 10,000 crore of energy efficiency equipment, all made in India. (At) Coal India, we need equipment, to ramp up production. I need mining equipment. It's going to do a lot of ordering. I'm going to order wagons, probably worth Rs 5,000 crore. Then the stalled projects, hydel projects. Transmission is the biggest of them all, about Rs 40,000 crore," Goyal said.

He said bids for four ultra-mega power projects (UMPPs) would be invited in the next three to six months. "These four proposed UMPPs include two for which we have cancelled the bid and we will be inviting fresh bids, and two more have been identified — one in Bihar and another in Jharkhand," Goyal said.

Earlier, the government had abandoned the bidding process of two ultra-mega power projects in Odisha and Tamil Nadu and decided to set up a committee on the matter.

The private companies that had participated in the first round of bidding for both the projects withdrew their bids citing difficulties in securing finances for the projects.

For the Tamil Nadu UMPP, the private companies in the fray were Adani Power, CLP India, Jindal Steel & power, JSW Energy, Sterlite Energy and Tata Power. Of these, four bought the Request for Proposal documents, but decided not to go ahead further in the process. The projects attracted a lacklustre response from companies due to several concerns.

Goyal said the government had taken steps to increase coal production and power generation in the country, and these efforts were beginning to show results. Industry has complained that many companies do not have enough orders because so far there has hardly been any significant pick up in project execution. Goyal said that orders are expected very soon. "It will happen ASAP (as soon as possible)," he said. 

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