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Reliance Power asked to set up production units

NEW DELHI: Stating that Reliance Power had emerged on top with three Ultra Mega Power Projects (UMPPs) in its kitty, Minister of State for Power Jairam Ramesh on Saturday asked the Reliance Power owner, Anil Dhirubhai Ambani, to ‘opt’ for domestic manufacturing of boilers and turbine generators for its power projects in Sasan, Krishnapatnam and Tilaiya to provide employment and maximum value addition in the country.

In a letter to Mr. Ambani, the Minister has stated that with 12,000 MW of capacity under its belt, Reliance Power should seriously consider domestic manufacturing of both boilers and turbine generators. “I believe you have an umbrella agreement with Shanghai Electric Corporation. I don’t have to tell you the enormous benefits that would accrue to the country if this agreement is activated to get Shanghai Electric to invest in manufacturing in India,” the letter states. Further, Mr. Jairam Ramesh has written that “You (Anil Ambani) are, of course, aware that Larsen and Toubro has already established domestic manufacturing along with Mitsubishi, Alstom was doing so with Bharat Forge for manufacturing turbines and Toshiba was also on this path with Jindal Power. The great advantage you have, obviously, is of volume and scale. Nobody else is in the position that you are.

Speaking about the Krishnapatnam UMPP and its EPC contract, Mr. Jairam Ramesh said that he had tried his best to get Reliance Power to look at Bharat Heavy Electricals Limited (BHEL) as a boiler and turbine supplier to this UMPP. However, despite BHEL giving its best shot, they were unable to forge an agreement with Reliance Power. “I have asked Mr. Ambani to give serious consideration to this aspect. It will be a glorious opportunity lost if the 12,000 MW is not used as leverage to maximise value-addition and employment in India. All I have suggested is that Reliance should ask its partner Shanghai Electric Corporation to set up a facility in India to ensure domestic manufacturing instead of importing the same from China in the interest of the country,” he added.

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