Bharat Heavy Electricals Limited (BHEL) Hyderabad unit, which recorded a turnover of Rs 2,860 crore for the year 2006-07, is expanding its gas turbine manufacturing capacity to 15 turbines a year keeping in view the potential demand that would arise due to huge natural gas production slated to begin in the KG Basin from next year. | |
| The unit will soon enter into technical tie ups with Mitsubhishi and Alstom for manufacturing the new generation super critical thermal power units of 800 Mw and above. |
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| Disclosing this here on Wednesday, GV Rami Reddy, group general manager, BHEL, said about Rs 45 crore was being invested in the new workshop being set up exclusively for manufacturing and testing the gas turbines that would take the capacity to around 15 turbines a year from the present 7-8 units. |
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| BHEL would also start building 230 Mw turbines in the new shopfloor in contrast to the 100 Mw turbines so far been produced by the unit. |
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| The present shopfloor, which is being used for both steam and gas turbine manufacturing, will now be dedicated to the fabrication of the steam turbines, he said. |
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| While the company has already extended the agreement with GE for heavy duty gas turbines of 230 Mw, it has newly entered into a collaboration with Alstom, US, for designing and manufacturing pulverisers up to 1,000 Mw for super critical thermal units. |
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| Similarly, an agreement with Mitsubhishi is under finalisation for pumps meant for super critical thermal power stations, Reddy said. |
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| According to Reddy, the orders for gas turbines is expected to increase in the near future. Companies like NTPC and Reliance have already placed orders with the Hyderabad unit for the same. |
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| Though the demand from power sector is very buoyant to keep the unit working overtime to deliver the orders on schedule, the issue of margins has started affecting its bottomline. |
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| "We are experiencing terrific pressure on margins on account of global competition," Rami Reddy said in response to a question on why the profit before tax for the year increased by just Rs 15 crore to Rs 630 crore while the turnover increased by Rs 200 crore compared with the previous year. |
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| Besides, the company is actively looking at entering the offshore oil rig fabrication business. |
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| Reddy said the company was exploring possible tie ups in this regard. BHEL has been producing onshore rigs for many years. |
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