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Q.

India a wonderful country, with many resources and infrastructure. But still the present day power projects are bought from China and our own BHEL and others are sidelined. Is it encouraging? In what way china projects are better than ours apart from cost? Will it not hurt Indian economy?

Tags: india, education, china
Asked by Sundar Rajan, 04 Oct '09 07:50 pm
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Answers (23)

1.

India is a wonderful country with many resources, but poor infrastructure. We are very slow in nation building. Even, after so many years of Independence, we have power shortage, water shortage and the Government struggles to provide basic amenities. If you look at Japan and China, I am mentioning only few Asian countries deliberately. They are way ahead in Infrastructure, when we compare ourselves to them. They have had the vision, foresight and proper planning to modernize their countries. Do you know I am told, there are no power cuts to save power in major Chinese cities. Here in India, the national capital is struggling to provide power supply. We call it load - shedding. What does it show ? Poor planning and poor infrastructure. Obviously, the Government did not fore see, the city would require a certain amount of power much earlier. Now the proportion has multiplied, and you have a huge gap between demand and supply. All these issues, speak volumes of poor pla ...more
Answered by Kavita Prsd, 05 Oct '09 01:02 am

 
  
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2.

Pal Sahab, I would like to quote a rather pragmatic quotation to answer your question : "It does not matter whether the cat is white or black as long as it catches mice." or words to that effect from Deng Xiaoping.
When there is a big power project, if our companies are not going to be competitive, what is the harm in awarding it to the lowest quoted tender, especially when it is a global tender? The difference in cost that runs in to 100s of crores will have to be paid from your and my pockets as taxes.
If the Chinese have quoted lower, so be it. Taken along with Joyoti's answer that I fully endorse, there is no merit in awarding the contract to a company that cannot do the project as cheaply as is required. Instead of some select Indian contractors (who import equipment anyway from China to the US to complete their projects - I challenge you to prove otherwise, and that includes BHEL that imports specialized components at 3 times the cost that it MAY have been able to manufacture ...more
Answered by Satish Kamath, 04 Oct '09 10:32 pm

 
  
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3.

It could be 3 reasons. First, the Chinese are known to complete projects on time. Second, of course cost matters. If you can complete a project on time it will cost less than one that drags on. So the govt. will favour a company that will do something at a lower cost. Third, Indian companies have to wake up and behave in a more completive and professional manner instead of trying to take shelter behind politicians like Karat and Yechuri.
Answered by joyoti sen, 04 Oct '09 08:11 pm

 
  
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4.

For projects as large as power projects they invite Global tenders, in which all the countries participate. If the lowest tender is meeting the specification, it has the requisite experience then they cannot overlook it, be it from China or any other country. BHEL and others are sidelined only because of this one criteria. Such projects cannot be given to them out of extraneous consideration that they will offer a substandard, indigenous product. Any extraneous consideration of this sort would hurt Indian economy.
Answered by Jack Johnson, 04 Oct '09 09:03 pm

 
  
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5.

This is due to govt policies.
BHEL is overloaded with work it can t not deliver u anything before 10 yrs and that too has too be in capacity of 250MW or above.
Answered by avinash bais, 04 Oct '09 08:58 pm

 
  
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6.

India and infrastructure. when i and n match
Answered by Sumit Basu, 04 Oct '09 08:19 pm

 
  
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7.

We do not have sophisticated equipment that is needed for such projects and we are known for delay in sanctioning anything be it even a pencil and until such time we change to take care of procedural delays what is available handy is what we go for.
Answered by gem mina, 04 Oct '09 08:18 pm

 
  
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8.

Yes,it will hurt indian economy
Answered by alok, 22 Feb '12 08:06 pm

 
  
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9.

At present rise in demand is more .Nobody has been sidelined ,they are producing to fullest of their capacityies.But stil some data is needed to make firm statment in this situation.
Answered by vilas manohar deshpande, 02 Jun '10 10:14 pm

 
  
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10.

It is the global competition that matters
bhel is not sidelined,it may also participate and has a healthy orderbook
Answered by anil garg, 01 Dec '09 08:47 pm

 
  
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