Setting up of BHEL-like company dismissed

New Delhi, May 16 (UNI) BHEL Chairman A K Puri today dismissed the proposal for setting up of an engineering company on the lines of BHEL, saying the public sector giant was in a position to help meet the country's energy requirement with certain capacity addition.

''A new company that operates in the same areas would be setting up similar capacities too. It is better to support an existing entity such as BHEL where the economies of scale for utilising 15,000 MW pa capacity would outweigh the setting up of new manufacturing capacities where the gestation period could range from 3-4 years,'' Mr Puri said.

He was speaking at the meeting of the Consultative Committee attached to the Heavy Industries Ministry headed by Santosh Mohan Dev.

Referring to the reports about a proposal for setting up of a power equipment and engineering company on the lines of BHEL, Mr Puri said, ''This would be a sub-optimum solution to the problem of equipment manufacturing capacity constraints and the need for technology upgradation.'' ''From the details available so far, it was not clear why capacity additions in BHEL would not be sufficient to meet the growing demand,'' he added.

He said it remained a questionable idea even if the intention was to attract private capital by involving a domestic company or an MNC.

''Instead, BHEL itself can raise capital or access technology by taking on strategic partners.'' The Minister said BHEL had emerged as an active player in ensuring the country's energy security for to electrical power. It is playing a larger role than just being a manufacturer and supplier of equipment.

UNI