18 GW of Indian thermal plants use Chinese equipment, MoU notes

This Memorandum of Understanding (MoU) between India's Ministry of Power and China's National Energy Administration aims to facilitate the establishment of Chinese Power Equipment Service Centres (PESCs) in India to provide timely maintenance and spare parts support for Chinese-made power equipment.

Who it concerns: The agreement involves the Government of India (Ministry of Power) and the Government of China (National Energy Administration). It affects Chinese power equipment manufacturers, Indian power generating companies, and project owners who utilize Chinese-made thermal power equipment.

What was agreed

• China's National Energy Administration will actively encourage Chinese equipment manufacturers to set up Power Equipment Service Centres (PESCs) in India.
• PESCs will be established on market principles, with costs and service terms decided between the service centres and end users.
• A Sub-group comprising government agencies and companies will be established to facilitate and review the progress of setting up PESCs.
• The MoU is valid for five years from the date of signature (October 23, 2013), unless amended or terminated by notice at least two months prior to expiry.
• The MoU does not confer any special or preferential status to the PESCs; they must comply with applicable Indian laws and regulations.

Also in the document

• The document notes that 18 GW of thermal power projects were commissioned under India’s 11th Five Year plan using Chinese-manufactured equipment.
• Approximately 40 GW of power projects were under construction using Chinese-made equipment at the time of signing.
• Contracts between PESCs and Indian project owners may exceed the five-year term of the MoU.