UNPRINCIPLED ACTIONS OF DONGFANG ELECTRIC CORPORATION

UNPRINCIPLED ACTIONS OF DONGFANG ELECTRIC CORPORATION

Why M/s Dongfang Electric Corporation (DEC), Chengdu, P. R. China should not be considered for awarding any job in Indian Power Sector? 

1.    What is the specific reason?

In this regard it may be emphasized firmly without any second thought that DEC should have been barred for one specific reason only as elaborated below.

It was a deadly decision taken consciously by DEC to discontinue supply of all SPARES to West Bengal Power Development Corporation Limited (WBPDCL). It was a vindictive approach and may be called destructive to the extent of slow poisoning with a determined unscrupulous objective to make the Sagardighi Thermal Power Plant (2x300 MW) of WBPDCL gradually crippled with a possible intimidation of frequent failures of (as a potential cascading effect of deficient Maintenance) critical equipment specifically Boiler, Turbine and Generator (supplied by the OEM - DEC, China) and then pushing the Plant to a stage of partially inoperative then almost shut down and finally total shut down so as to declare it a abandoned power station well before its normal 25 years life cycle.

2.    Why it is so derogatory?

 

There may be thousand valid reasons inviting dispute between the Owner (WBPDCL) of a Power Plant and the Contractor (DEC) who had constructed two Units (2x300 MW) at Sagardighi Thermal Power Plant  during 2004-2008. But, the unethical vindictive approach of Dongfang Electric Corporation to stop supply of all SPARES both from DEC, China and DEC, India including their designated sub-vendors has been found long-suffering to WBPDCL for maintaining and running the Sagardighi Thermal Power Plant (2x300 MW) smoothly and steadily. Surprisingly, after completion of Performance Guarantee Tests in July, 2009 and May, 2010 and prior to foreclosure of Contract in September, 2010 they have, unilaterally, stopped supply of all SPARES from early 2010 and as a result the Plant is tottering for want of minimum SPARES. To add fuel to the fire, DEC failed miserably to supply complete set of Mandatory Spares (contractually they are bound and committed to supply along with main equipment) for the Main Plant. It is a glaring example of refusal of contractual compulsions agreed legally by DEC. It is an exceptional approach for any reputed and reliable esteemed foreign OEM/Contractor. Under such a grave scenario, WBPDCL ran from pillar to the post for procurement of interchangeable SPARES either from India or China at any cost to save the Plant but failed time and again as there was clear directive from the top management of DEC, China to all its manufacturing units including DEC, India and designated sub-vendors to refuse any requisition of WBPDCL for supply of SPARES. It will not be out of the place to mention here that DEC, India has a Warehouse in India wherein they maintain a healthy stock of SPARES for Critical Equipment to extend support service to Indian Clients. Since the equipment of BTG Island is from China there is no indigenous supplier who can supplement the need of critical SPARES mainly Boiler, Turbine and Generator to save the Units of Sagardighi Thermal Power Plant (2x300 MW). There is a threat that the Plant is becoming crippled day by day for want of bare minimum Maintenance of critical equipment like Boiler, Turbine and Generator (supplied by OEM - DEC, China) inviting a chance of dumping of such precious equipment of the Plant  well before the completion of 25 years normal life cycle.

3.    Is there any compromise formula? 

  

Perhaps, there is............

DEC should approach WBPDCL voluntarily and address gracefully to solve the longstanding impasse without imposing any condition; they should confirm that 

* They will complete all pending jobs as per contract
* They will supply 100% Mandatory Spares as per contract
* They will replace identified 6.0 kV HT Motors by 6.6 kV HT Motors
* They will replace identified 380 V LT Motors by 415 V LT Motors 
* They will take up free capital overhaul of BTG Island of both Units
* They will reimburse all pending dues claimed by WBPDCL

Posted by Debabrata Dey on 13 July, 2012