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Ban on Chinese power equipment will not impact NTPC, say sources

The ban placed by the Central government on import of power equipment from China will not have any impact on state-run NTPC Limited, said sources aware of the matter

The ban placed by the Central government on import of power equipment from China will not have any impact on state-run NTPC Limited, said sources aware of the matter.
The ban placed by the Central government on import of power equipment from China will not have any impact on state-run NTPC Limited, said sources aware of the matter.
  • Another source said that state-run NTPC has already placed orders for emission control equipment worth Rs 25,000 crore

  • At a meeting on July 3, Power Minister RK Singh India had said India will not allow imports from China and Pakistan, citing recent transgression in border areas

New Delhi: The ban placed by the Central government on import of power equipment from China will not have any impact on state-run NTPC Limited, said sources who spoke to PSU Watch on the condition of anonymity. “We mostly bring out global tenders and our exposure to China is limited. Because our conditions are strict, Chinese companies rarely qualify. We source our equipment mostly from BHEL, Alstom, L&T, GE, among others,” a source said.

Orders worth Rs 25,000 cr placed by NTPC on domestic companies: Source

Another source said that state-run NTPC has already placed orders for emission control equipment worth Rs 25,000 crore. “Orders for emission control equipment of about 50 GW has already been placed. The largest chunk of these orders have been given to BHEL. And the remaining is with L&T and GE,” the person said.

“For FGD installations as well, NTPC’s dependence on China is low because they rarely qualify tender criterion. If the companies where orders have been placed source their products from China, then there may be a delay. Otherwise, I do not foresee any issue facing NTPC because of the ban on Chinese imports,” said one of the two sources.

The backdrop

At a meeting held on July 3, Minister of Power RK Singh asked state power ministers to not use Chinese equipment and to procure all power sector equipment and technology which are available within the country from domestic manufacturers. While asserting that the power sector is strategic and essential in nature and is hence, vulnerable to cyber attacks, Singh said that imported equipments will be subjected to testing at certified and accredited laboratories designated by the ministry to check influx of malwares like Trojan etc. Citing recent transgression in border areas, the minister also said that India will not allow imports from China and Pakistan.

Singh had also said that India’s import bill for power equipments was around  Rs 71,000 crore in the year 2018-19 even when the country has manufacturing facility and ability for various requirements of the power sector, which includes import of over Rs 20,000 crore from China.

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