
National Manufacturing Competitiveness Council chairman V Krishnamurthy has opposed the power ministry8217;s move to push state-owned NTPC into equipment manufacturing. Rather than compete with Bhel, Krishnamurthy said in a letter to principal secretary in the PMO T K A Nair, NTPC is a 8220;specialist in power utilities and must concentrate on its core strength. not fritter energies in manufacturing8221;.
After the 50 per cent shortfall in capacity addition in the Tenth Plan, the power ministry held Bhel partly responsible for power project commissioning delays and even proposed that NTPC would set up a parallel manufacturing facility. In January, Prime Minister Manmohan Singh asked Krishnamurthy to recommend whether the MoP8217;s idea of NTPC setting up a manufacturing facility was a 8220;satisfactory solution8221; to the problem of meeting plan targets.
Krishnamurthy said 8220;even after Bhel expands capacity, we need more players8230; this 8220;would ensure healthy competition.8221; He adds, 8220;the argument that NTPC needs its own manufacturing capability in view of Bhel8217;s supply delays is untenable.8221; Saying that NTPC and Bhel 8220;must complement each other and not compete8221;, Krishnamurthy indicates that Larsen 038; Toubro should be groomed as a competitor to Bhel and 8220;alternative source of manufacturing of power plant equipment, instead of NTPC venturing into it8221;.