"While CEA (Central Electricity Authority) identified power generation capacity addition requirements of 67,439 MW for XIth plan period (2007-12) in the country in November 2003 itself, BHEL completed the first phase of its capacity addition programme in March 2011," CAG said in its report tabled in the Parliament.

Thus, the manufacturing capacity expansion, which was required to be planned and completed in the initial years of the XIth plan was declared to have been completed by BHEL only towards the end of the plan, it said.

"Implementation of the capacity expansion programmes for the XI and XIIth Plans disclosed delays between seven months and 62 months in 17 selected schemes out of 22 schemes approved in 2007-12," CAG said in the report.

In addition to some uncontrollable factors, it said, delays due to reasons like non-fixation of targets for vendors to erect and commission machines, replacement of damaged equipment and delays in pre-ordering activities could have been minimized through improvements in market research, planning and monitoring.

"Existing installed manufacturing capacity for turbines, generators and boilers during 2007-11 remained largely underutilized," the report added.

There was considerable scope for improved utilization. Though capacity utilization picked up during 2011-12, there is a need to maintain and further improve it in order to achieve the benefits of ongoing capacity augmentation.

Further, audit observed delay in delivery of equipments ranging between 7 and 68 months in 126 out of 151 sets delivered by BHEL to its customers during 2007-12.

CAG Audit report examined the adequacy and results of efforts of BHEL from conceptualization to execution of manufacturing capacity expansion and its utilization during 2007-12.


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