How do you evaluate the existing R&D capabilities of BHEL in terms of the challenges it will have to face in the emerging environment of economic competition?
Our R&D set-up is adequate both in terms of facilities as well as institutional planning. Since 1975, we have made special efforts to develop well-equipped engineering development centres (EDCs) for all manufacturing units. From the early 1980s onwards, we have supported the work of the unit-level EDCs with the centralised corporate R&D division at Hyderabad. This integrated set-up will enable us to match any technological competition.

So the BHEL R&D facilities will be a match for that of the multinationals.
Of course! But there will also be a change in direction of the R&D effort. Previously, we concentrated on import-substitution. Today, the emphasis has shifted to introduction of new products and services in order to explore new markets. We have the R&D capability to do this.

Competition with the multinationals is not a new experience for us. Most power contracts won by BHEL concern projects receiving huge financial assistance from the World Bank and other international agencies, where we had to compete against foreign bids.

Do you think BHEL's R&D expenditure is adequate?
The funding is not adequate though our R&D expenditure is among the highest in the country. It will increase gradually. At the same time, we will ensure the funding increases the business potential of the company.

But there has been, reportedly, a large variation in the performance levels of various laboratories. How will you optimise their performance?
It is incorrect to say there are wide variations in the performance of various R&D laboratories. Where specific research in an exclusive area is concerned, it makes more sense to let the EDC concerned with that particular area handle it exclusively. And the task of corporate R&D is to optimise the work being done by the other labs.

But some of your best R&D people have left for more remunerative assignments. And you have also imposed a ban on fresh recruitment.
The impact of experienced engineers leaving is negligible. Admittedly, fresh induction is being controlled to optimise our human resources, but this has not prevented us from bringing talented engineers into our R&D units.

In most industrialised countries, stringent environmental standards have forced major changes in power generation technology? What is BHEL doing?
BHEL is spending money on research in frontier clean technologies such as pressurised fluidised bed gasifiers, which are expected to be the environment-friendly power generation technologies of the future. BHEL's pollution control research institute is concentrating on remedial measures for noise, water and air pollution.