Ministry against using Chinese co’s boilers
‘Violation of IP rights by Shanghai Boiler Works’.
M Ramesh

Chennai, July 12 The Ministry of Heavy Industries has cautioned the Ministry of Power that Shanghai Boiler Works Ltd, a subsidiary of Shanghai Electric Corporation, China, could be violating Intellectual Property Rights laws.

In a letter dated June 3 addressed to Mr H. S. Brahma, Secretary, Ministry of Power, Dr Satyanarayana Dash, Secretary, Ministry of Heavy Industries, says: “I would like to draw your attention to an immediate issue of violation of intellectual property rights by a China-based company, namely, Shanghai Boiler Works Ltd.” The Ministry of Heavy Industries is the parent ministry of BHEL, the power equipment major.

The letter goes on to say “it has been reported by Alstom to BHEL that SBWL does not have the permission to sell in India the supercritical boilers manufactured in collaboration with Alstom.”

The collaboration extends only to the Chinese market. “In spite of this, SBWL has contracted several projects with Indian utility companies for supercritical sets (boilers) for which they do not have valid licence,” Mr Dash says in the letter.

“BHEL is getting a feedback from utility agencies that have placed order with SBWL that they have no information regarding such a major issue concerning IPR. Needless to say that this may create legal and other problems for power generating companies in India in a big way, particularly because Alstom is contemplating to take legal recourse for such violation by SBWL,” the letter says.

“Under these circumstances, I thought it is most appropriate to draw your attention to this important issue of IPR violation so that remedial action can be taken urgently before it jeopardises power projects in India,” says Mr Dash.

While Shanghai Electric has supplied boilers to a number of projects, it has as yet not supplied any supercritical sets in India. By far, the only agreement it has is with the Reliance ADAG, for the Sassan project; the details of the agreement have not been made public.

Sources in the power sector say that Shanghai Electric could have its defences ready, such as, a claim that the boilers it would supply are of non-Alstom technology.