No impact of coal controversy on order book: BHEL

State-run Bharat Heavy Electricals Ltd said the ongoing controversy over coal block allocation for power plants will not have any impact on the engineering major’s order book or operations

Written by ENS Economic Bureau | New Delhi | Published: September 18, 2012 2:55 am

State-run Bharat Heavy Electricals Ltd said the ongoing controversy over coal block allocation for power plants will not have any impact on the engineering major’s order book or operations.

Refuting reports that some of the projects,for which BHEL is supplying equipment,could be impacted by coal block allocation issues,the engineering firm has said that projects currently being executed by BHEL “have the required coal linkages and are progressing satisfactorily.” BHEL has an order book position of around Rs 1,30,000 crore.

“There is no potential risk involved due to issues related to coal. The payments for the work being carried out on these projects are also coming in regularly,” it said.

BHEL said the 4×270 MW Chandwa project (of Abhijeet Group) being executed by the company has the necessary coal linkage from Coal India and is in an advanced stage of execution. “Similarly,the 4×600 MW project at Tanmar of the Jindal Power Ltd (JSPL) being executed by BHEL is also in a very advanced stage of execution and has the coal linkage through Coal India. The projects of JSPL,for which doubts on the coal blocks at Jitpur and Amarakonda have been raised,pertain to a new project proposed by JSPL at Godha. The order for this project has still not been finalised,” it said.

The statement said that various customers such as DB Power,Jindal Photo Ltd,Adhunik Power and GVK Power — which have been allocated coal mines for their upcoming power plants—also have alternative coal linkage/tapering linkage available from Coal India or its subsidiaries.

An Inter-Ministerial Group yesterday recommended deallocation of three more coal blocks,taking the total number of mines recommended for cancellation of licences due to insufficient progress to seven.

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