Energy Handbook 2011 - GBR

P o w e r S u m m i t - T h e E n e r g y H a n d b o o k 2 0 1 1
F o c u s : N u c l e a r P o w e r
Interview with Baba N Kalyani,
Chairman and Managing Director, Bharat Forge Ltd.
Q – Please could you
start by giving us an
overview of Bharat Forge
and how the company
has evolved since you
became CMD?
A – In the 1990s, I
converted our company
to a global business and I
believe that we are now
the leading company in
our segment. We have
diversified from being purely a supplier to the
automotive industry into other industrial sectors
as well. Our strategy for this decade is to build
our non-automotive businesses -- primarily our
capital goods interests -- substantially, so that
they contribute to 70- 75% of our revenue. Five
years ago it was only about 5 or 10%. Within the
capital goods segment, power is one of the key
verticals.
We are a technology-driven company and within
the power sector we are going to be present in
the renewable energy as well as thermal and
nuclear energy sectors. Our focus is to build
equipment for these sectors. We are currently
building wind turbines which we manufacture and
sell in India and Europe. We are now setting up a
plant to build steam turbines and generators using
super critical technology. We are partnering with
Alstom in this.
We are also setting up a plant to build turbines
and generators for thermal power plants in the
range of 300 to 800MW – sub critical, super
critical and ultra super critical. Bharat Forge
also has a relationship with Areva of France
to manufacture and supply components for
the nuclear power sector. We currently supply
specialised forgings to the Indian nuclear industry
and by the nature of our upcoming businesses
we will become a very large player in the power
sector.
that is BHEL. Production capacity was about
5,000MW to 6,000MW, which they are currently
doubling. India’s current installed capacity is
about 150,000MW and this needs to go up to
nearly 800,000MW in the next fifteen years. This
growth cannot be met by one company alone.
The power market is the biggest opportunity in
the Indian manufacturing sector today. Power
equipment by its nature requires a lot of forging -
- which is our core business. We are world leaders
in our field and experts at manufacturing.
Q – How do you see the Nuclear Liabilities Act
impacting on your aspirations in the sector?
A – I think that there is a lot of media hype
surrounding the issue. My own personal view is
that between the government of India and the
people who plan to build the nuclear plants, there
will be a very clear understanding of liabilities.
If you have a one-sided view of liability then no
one is going to build the plants. The market has
its own way of finding its balance. I don’t think
there will be any delay caused by this. If you have
any liability you can go to an insurance company
and they can give you cover for a certain price.
This price will be the same for anyone. If it is
uninsurable then no one will build the plants.
Q – What would be your message to our readers
around the globe about the Indian Power Sector,
and Bharat Forge specifically?
A – Bharat Forge aims to grow by three times
within the next five years - and will be a $4bn
company. Power equipment sales will play
a substantial role in this growth. The power
industry in India; whether it be the manufacturing
of equipment, energy generation, transmission
or distribution; is going to be one of the largest
drivers of growth over the next two decades.
In order to reach at least moderate levels of
electricity consumption in India, the sector will
require major investment. India is without a doubt
one of the most exciting places in the world when
it comes to doing business in the power sector.
Nuclear Power
Nuclear power has never been so widely, and extensively,
employed as it is today. More and more of the world is
embracing nuclear generation on an unprecedented scale due to
its near zero emission of greenhouse gas and relative insulation
from commodity price fluctuations and supply chain disruption.
In many countries, nuclear is the
only large-scale alternative to fossil
fuels that is readily available to meet
growing demand for baseload power.
Here we look at the opportunities and
challenges associated with nuclear power
and explore the major avenues of research
and development within the field.
power that nuclear power provides: “I’ve
always said: “We are nuclear. No one
likes us. We don’t care. The market place
is very obvious. The world cannot survive
without our contribution.”
In 2009, 13–14 percent of the world’s
electricity was generated from nuclear
power. According to the European
Nuclear Society, in October 2010 there
were 441 nuclear plants in operation, in
30 countries, with a combined capacity
of around 375 GW. The World Energy
Council reports that this capacity is
expected to rise to between 600 and
1,340 GW by 2030. Over 30 countries
are currently planning or delivering nuclear
energy programmes. Across the world, 52
reactors are under construction, a further
140 are on order or planned, and an
Article by:
Tom Willatt
“The perfect answer for the reduction of
CO2 emissions, on a large scale, is nuclear
power plants,” believes Bob Prantil,
North Region Executive at GE Energy. But
Q – You have built a dominant position in your Bharat Forge is committed to play a significant
despite its emission credentials, nuclear
core business of components, why then enter role in manufacturing equipment and energy
generation promotes an ideological
an industry (power equipment) that has been production. India will emerge as one of the
discussion perhaps more than any
under the control of a handful of state-owned most competitive places for manufacturing high
other energy issue. Duncan Hawthorne,
companies for many years?
technology products within the next twenty
President and CEO of Bruce Power, a
A – For many years there has only been one years. Brand India is already improving, but there
privately owned company that operates
player in the Indian power equipment sector and is still a long way to go.
a nuclear facility in Canada, believes that
this is due to the necessity of the reliable additional 344 are at the proposal stage.
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