Beginning April 2011, BHEL will deliver boilers, two months ahead of the existing schedule and will aim to reduce the schedule by a total of four months for orders to be booked beginning 2012-13. This, coupled with the focus on cost reduction, is expected to make BHEL competitive enough on both price and delivery front. BHEL has been facing competition from Chinese manufacturers and emerging private players forcing it to address one of its major weaknessesâ€”a tardy pace of order delivery. BHELâ€™s Executive Director AV Krishnan, admits that Chinese price quotes and delivery schedule are on an average 20 per cent lower than BHEL.
BHELâ€™s first supercritical supply is expected to be operational at Barh (Phase-II) thermal power plant in Bihar only in 2012. And till such time the country is scheduled to commission six to seven supercritical units, supplied by China.
To enhance its output, BHEL will increase outsourcing of technology items from as low as 46 per cent in 2009-10 to a projected 61 per cent.