Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / NTPC blames GE over faulty turbines
BackBack

NTPC blames GE over faulty turbines

NTPC blames GE over faulty turbines

Premium

New Delhi: The country’s largest power generation utility, NTPC Ltd, on Thursday blamed US conglomerate General Electric Co., or GE, for supplying faulty equipment to Ratnagiri Gas and Power Pvt. Ltd, the former Dabhol Power Co.

“Certain problems which are appearing are surprising. What we have been informed is that this is a very chronic problem. There are design deficiencies," NTPC chairman and managing director R.S. Sharma said at a session of the India Electricity 2008 conference in the Capital.

ALSO READ

Govt blames GE for problems at Dabhol

Govt threatens to blacklist GE; Bhel tie-up may be reviewed

NTPC to hire outside agency for Dabhol turbine probe by GE

The Union government had claimed that four of the six “9 FA-class" turbines supplied by GE to the 2,150MW power project in Maharashtra were defective.

The Centre had also raised questions about the shortfall in power generation from these turbines. “There are design issues... There are more problems, which we do not want to discuss now," Sharma later told reporters.

The Dabhol project was conceived in the 1990s and was originally promoted by Enron Corp., which filed for bankruptcy in 2001. It was renamed Ratnagiri Gas and Power Pvt. Ltd, or RGPPL, after it was taken over by a combine of public sector banks, the Maharashtra government, GAIL India Ltd, NTPC and financial institutions. NTPC and GAIL hold a 28.33% stake each in the project.

Besides the loss of power generation capability, government officials say that repeated failures entail substantial repair costs. Excluding the cost of spares, this has been estimated at Rs77 crore.

“We are aware of the concerns about the Dabhol plant and understand the importance of this project to the people of India. We look forward to seeing the Dabhol plant running and supplying much-needed power to the people of India," a GE spokesperson said.

The government had even threatened to ban GE from all future public sector power projects and review its alliance with state-owned equipment maker Bharat Heavy Electricals Ltd.

“If GE has to garner market share in India, the company has to work out all these design and technology issues," said a Mumbai-based power sector analyst, who did not wish to be named.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

ABOUT THE AUTHOR
Utpal Bhaskar
"Utpal Bhaskar leads Mint's policy and economy coverage. He is part of Mint’s launch team, which he joined as a staff writer in 2006. Widely cited by authors and think-tanks, he has reported extensively on the intersection of India’s policy, polity and corporate space.
Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 12 Sep 2008, 12:37 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie