Delays Plague Thermal Projects, BHEL Faces Scrutiny

Why in the news?

BHEL faces government and NTPC scrutiny over delays and quality issues in thermal projects. Challenges like labor shortages, theft, and raw material unavailability hinder progress, impacting India’s thermal capacity addition, critical for balancing renewable energy variability.

Delays Plague Thermal Projects, BHEL Faces Scrutiny

Challenges in Thermal Power Projects:

  • BHEL, a key manufacturer and installer of thermal power equipment, faces scrutiny over delays and quality issues in project execution.
  • NTPC, India’s largest thermal power generator, has raised concerns, urging better project management and faster execution.
  • Delays in thermal projects have been attributed to law and order issues, shortage of labor, theft, fire, and raw material unavailability.

Government Interventions and Expectations:

  • Senior government officials directed BHEL to engage third-party consultancy services and hire financially sound contractors to expedite work.
  • At a September meeting, BHEL committed to commissioning 9 GW of thermal capacity in the current financial year.
  • Top bureaucrats emphasized the national importance of meeting this goal to address rising energy demand.

Thermal Power Capacity and Renewable Energy:

  • Over the past five years, thermal capacity addition has been half of the target, with just 13 GW added, compared to 160 GW added in renewable energy during the same period.
  • Thermal capacity is critical for baseload power to balance the variability of renewable energy in the national grid.
  • From April to November 2024, only 60 MW of thermal capacity was added against a target of 4 GW, highlighting the urgency of resolving project execution challenges.

The government continues to prioritize thermal power projects to ensure energy security, despite the growing focus on renewable energy.

Sources Referred:

PIB, The Hindu, Indian Express, Hindustan Times