New Delhi, Nov. 6: Power equipment manufacturer Bhel has entered into an agreement with global energy major Shell to supply gas turbines and generators for the next five years.

“Under the enterprise framework agreement, Bhel will supply gas turbine generator (GTG) packages to Shell in select locations, including the Asia-Pacific, Middle East, central Asia, eastern Europe and Africa,” Bhel said.

The state-owned firm did not disclose the financial details of the deal.

“The agreement covers the supply of Frame-5 (26MW), Frame-6B (42MW) and Frame-9E (126MW) GTG packages by Bhel for power generation application and includes installation and commissioning services,” the PSU said.

The agreement will give Bhel the opportunity to extend its gas turbine business in untapped geographies globally. The equipment will be manufactured at Bhel’s Hyderabad facility, while the associated control systems will be supplied from the Bangalore factory.

Since 1986, Bhel has supplied around 200 gas-based turbines to domestic and overseas customers. The company’s current equipment manufacturing capacity stands at 20,000MW.

Coal India under fire

Private power producers have alleged that the draft fuel-supply agreement (FSA) prepared by Coal India is “discriminatory.”

“Discriminatory treatment by Coal India Ltd (CIL) to private power producers is giving undue benefits to state-owned companies. CIL’s draft FSA is one-sided and is not in accordance with the presidential directive,” Ashok Khurana, director-general of the Association of Power Producers, said in a statement. It said the draft document still retained many provisions, which the industry had opposed. CIL does not have the right to terminate the pacts in case of differences with the power producers, the statement said.

The option for arbitration regarding the agreements is only open to government firms. Khurana said CIL’s discriminatory FSAs were against the principle of natural justice.