New Delhi: Stiff competition from Chinese power equipment manufacturers has forced state-run Bhel to slash the prices of its products by up to 5% to bag orders from the private power producers.
Besides lowering its prices, Bhel has been benefited by favourable rupee-dollar movement vis-a-vis Chinese currency making overall impact on prices by about 25% downward, Bhel CMD K Ravi Kumar said in an interview.
“We have 20% price advantage in terms of payment in rupee compared to payment in US dollars to Chinese companies. In real terms, we had to bring the prices down by only 5%,” he said, adding BHEL’s equipment were more efficient in terms of heat rate.
Last year, Bhel had bagged a major order from Jindal Steel and Power Ltd (JSPL) for 2,400 MW power project and 500 MW from JP Group. The company is also expecting some more orders from the private players.
Kumar, however, expressed concern over losing out contracts in the super critical 660 MW category to Chinese companies on the price front but pointed out that Bhel equipment were much more efficient.
The company has also approached the Ministry of Power for specifying the heat rates of the super critical thermal sets.