BHEL bags Rs 6,000 crore worth orders from KPCL

Bharat Heavy Electricals Ltd (BHEL) has bagged power equipment orders worth Rs 6,000 crore from the Karnataka Power Corporation Ltd (KPCL) for setting up 2x800 Mw of thermal power plants at Yermarus and Yeramarus in Raichur district, a top official of BHEL said.

“These orders are part of the deal we had signed with KPCL for the supply of equipment. As part of the deal, we will take equity of 26 per cent in their new 2,400 Mw thermal power plant. The total equity of the new JV is Rs 1,200 crore. The orders for one more unit of 800 Mw from KPCL are expected,” B P Rao, chairman and managing director, BHEL said.

Addressing a press conference during his maiden visit to BHEL’s Bangalore complexes after taking over as CMD, Rao said the company will be forming a joint venture company with KPCL to set up 3x800 Mw super-critical thermal power plants in Raichur, he said.

As part of the growth strategy, BHEL is also in the process of setting up thermal power plants jointly with various state governments. It has already entered into tie ups with states like Karnataka, Maharashtra, Tamil Nadu and Madhya Pradesh for setting up of 3x800 Mw, 1,500 Mw, 2x800 Mw and 2x800 Mw power plants respectively. In Maharashtra, it is setting up the gas-based power plant. For each of these projects, the equipment will be supplied by BHEL, Rao said.

In addition to these states, BHEL is also in talks with three more states like Andhra Pradesh, West Bengal and Gujarat for similar power plants, he said.

Rao said, the company would be making an investment of Rs 1,600 crore over the next three years to expand its capacity to manufacture equipment for 20,000 Mw across its divisions in the country. The company has also finalised the technology for its proposed 250 Mw solar photovoltaic plant jointly with Bharat Electronics Limited. The location and exact investment required for the plant are being finalised, he said.

He said the company is likely to achieve a turnover of $11 billion by 2012 as against the target of $10 billion. During the current year, the company also plans to recruit 4,000 new employees, he added.