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Report No. 26 of 2013 - Performance Audit on Expansion and Utilization of Power Equipment Manufacturing Capacity in BHEL of Union Government, Ministry of Heavy Industries and Public Enterprises

Date on which Report Tabled:
Mon 17 Feb, 2014
Date of sending the report to Government
Government Type
Union
Union Department
Commercial
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Sector Power & Energy

Overview

Development of energy resources plays a vital role in the growth of an economy. An accelerated growth of power sector is imperative for the overall growth of the country. In order to accelerate economic growth of the country, Government of India (GOI) laid emphasis on efficient and rapid growth of power sector with large private investment. The Planning Commission also increased (June 2008) targets for capacity addition in generation of power in XI Plan compared to targets fixed for X plan so that the objective of National Electricity Policy 2005 to provide access to electricity for all households was achieved.

To achieve these ambitious power generation targets, availability of commensurate power equipment manufacturing capacity in the country was equally important. Bharat Heavy Electricals Limited (BHEL), a Maharatna Central Public Sector Enterprise (CPSE) under the administrative control of Department of Heavy Industry, Ministry Heavy Industries and Public Enterprises (Ministry), is one of the largest engineering and manufacturing enterprises in India in energy-related/infrastructure sector. At the end of March 2013, BHEL had supplied utility power generating sets equivalent to 1,15,500 MW which accounts for 57 per cent of the overall installed power generation capacity in India.

Central Electricity Authority (CEA) in their latest report of May 2013 acknowledged technical superiority of equipment manufactured by BHEL as compared to some other competitors from abroad. BHEL implemented three capacity expansion programmes in phases1 to meet projected power equipment requirements during X, XI and XII Plans respectively. In this backdrop, performance audit of power equipment manufacturing capacity expansion and utilization of BHEL was taken up to assess the adequacy and results of efforts of BHEL in capacity expansion and its utilization for meeting the power generating capacity addition requirement in the country.

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