GE Power India Ltd (GEPIL) has attained close to 100 per cent self-sufficiency in the flue-gas desulphurization (FGD) business, according to senior company officials.
Addressing an investor conference recently, GEPIL officials stated that it has made significant progress in terms of developing competence in the FGD business and that it is now close to 100 per cent self-sufficient.
The observation comes in the backdrop of parent company GE’s decision to exit the coal business and therefore decouple itself with all coal-related activities by its subsidiaries– GEPIL in this case.
During Q2 (July to September) of FY23, GEPIL witnessed two very significant developments with respect to the FGD business. First was the commissioning of the FGD package for NTPC’s Unchahar coal-based power plant in Uttar Pradesh, on August 31, 2022. With this project, GEIPL has demonstrated that in the FGD business, the company is fully self-competent with respect to successful execution. Besides, GEPIL has also independently qualified (without the role of GE) for some state government power projects; Sikka thermal power project of Gujarat State Electricity Corporation Ltd is a case in point.
The second development was the winning of a major FGD order, related to Adani Power’s Udupi power plant in Karnataka. The order, valued at around Rs.131 crore, was placed by EPC contractor Power Mech Projects. According to GEPIL officials, this is not an EPC order but an EP order where GEPIL will be supplying the engineering and the technology part, and the core components for the absorber, which is the heart of the FGD unit.
As of September 30, 2022, GEPIL had an outstanding order book of around Rs.4,096 crore in which FGD projects had a share of around 30 per cent. GEPIL sees FGD-related business opportunity of Rs.55,000 crore to Rs.60,000 crore, over the next 4-5 years.
Order inflow
During Q2 of FY23, GEPIL saw an order inflow of Rs.248.3 crore as against Rs.96.9 crore in the same period of FY22. The Q2FY23 order inflow was dominated by the Rs.131-crore FGD order that has been discussed above. The full order inflow in FY23 was for non-EPC projects, which was also the case in Q2 of FY22. As far as ownership classification goes, 82 per cent of GEPIL’s order inflow in Q2 of FY23 was from the private sector. The same metric in FY22 was 86 per cent.
Also read: GE To Exit GE Power India Over The Next 36 Months
Growth of services
Commenting on the company’s performance in Q2 of FY23, Prashant Jain, Managing Director, GE Power India Ltd, said, “GEPIL is making progress in delivering on the business strategy to grow services, ensure the right mix of EPC & EP projects and grow industrial and private customers. We have bagged two significant emission control orders: an FGD order from Power Mech Projects Ltd for Udupi Power Corporation Ltd, which is an EP project in line with the strategy and an ESP upgrade order from Trident Ltd for its Barnala plant. Also, orders in the Services business segment are up by 42 per cent compared to corresponding period of last year combined with good profitability.”
