Tiruchirappalli, Dec 23 (KNN) Micro, Small, and Medium Enterprises (MSMEs) based in Tiruchi, Tamil Nadu, specialising in job works, are benefiting from the resurgence of thermal power capacity in India, presenting a wave of business opportunities, as service providers for the well-known power equipment manufacturer, BHEL, reported Businessline.

BHEL's Tiruchi plant, specialising in boilers for large power projects, is witnessing a remarkable turnaround after almost a decade of slow business, primarily attributed to the downturn in the thermal power sector, as reported by Businessline.

Order loading by BHEL is poised to increase nearly tenfold in the next 3-4 years, soaring from the current 30,000 tonnes per year to an estimated 300,000 tonnes.

Despite this promising development, there is a subdued mood among the local MSMEs, fuelled by concerns such as the anticipation of low rates imposed by BHEL's tendering process, a shortage of skilled manpower, and challenges in accessing bank finance, aggravated by the Non-Performing Asset (NPA) status of many businesses, as per Businessline.

During BHEL's zenith period from 2000-2010, a thousand ancillaries thrived in activity. However, with a downturn in business over the last decade, only about a hundred survived, and only half of them are currently active. The recent surge in activity signals a positive turn of events.

D Mohan, President of the BHEL Small and Medium Industries Association, indicates that BHEL requires at least 350 vendors for various boiler parts.

The sudden surge in activity is attributed to the Union government's commitment to building coal-fired power capacity in response to the increasing demand for electricity.

Despite global efforts to shift away from coal-fired power plants to mitigate further global warming, the Centre has planned to construct 80 GW of fresh thermal power capacity between now and 2032.

Industrial power consumption grew by 7.18 per cent between 2018-19 and 2021-22, with the Central Electricity Authority projecting a coal-based installed capacity of 283 GW by FY32 compared to the current 214 GW.

The demand for power cannot be solely met by renewable energy sources, and the government plans to continue relying on coal-based generation until cost-effective energy storage solutions become viable, as stated by the Ministry of Power on December 14.

Presently, 27 GW of capacity is under construction, another 31 GW is in advanced planning stages, and an additional 30 GW has been identified for development.

This surge in demand has translated into a deluge of business for Tiruchi-based MSMEs. Despite the potential for a festive atmosphere, the prevailing sentiment is one of cautious and apprehensive optimism.

These MSMEs, primarily fabricators paid per tonne of steel, express concerns about being forced to undertake jobs at unviable rates. While BHEL officials argue that rates are quoted by the MSMEs against BHEL's tenders, the vendors assert that the situation is more complex than it appears.

(KNN Bureau)