BHEL-NPCIL JV to rope in private partner soon

The BHEL-Nuclear Power Corporation India Ltd (NPCIL) joint venture is expected to rope in a private partner soon. The three partners are likely to hold 33 per cent each in the venture.

Though BHEL Chairman and Managing Director B Prasada Rao did not give the name of the private partner, according to reports, France’s Alstom is likely to partner the two government-controlled companies in the new venture. “We have selected one partner,” Rao said at a press conference today. The private partner was earlier expected to be offered 26 per cent stake.

BHEL and NPCIL had signed a memorandum of understanding in April 2008 to form a joint venture for providing engineering, procurement and construction services in the nuclear power sector. However, the two are yet to formalize the MoU into a formal shareholder agreement.

BHEL Director (Power) Atul Saraya said the formal agreement would be signed after the announcement of the private partner. He said the joint venture would be placing the order on BHEL which would use its Bhopal and Haridwar facilities to enhance its equipment capacity for the nuclear sector. The order would be for around three units of 700 Mw.

Power sector constitutes 76-77 per cent of the company’s total business of which coal comprises 83 per cent, gas 3-4 per cent and hydropower 2 per cent. The company’s boiler capacity at Trichunapalli would also be used for catering to the nuclear sector.

BHEL already has a tie-up with Alstom for its boiler business. It has another tie-up with Seimens for the turbine business.

BHEL’s net profit jumps 36%

The government-controlled power equipment manufacturer today announced a 39 per cent increase in net profit to Rs 1,886 crore during the quarter ending March 31, provisional financial results for the year. Its turnover increased by about 26 per cent, to Rs 13,967 crore.

The cumulative jump in net profit fior 2009-10 was 36 per cent, to Rs 4,287 crore, compared to Rs 3,138 crore in 2008-09.

“With such a strong base, we have planned to recruit 4,000 personnel in the year ending March 31, 2011,” said B P Rao, chairman and managing director. The turnover for the year rose over 21 per cent to Rs 34,050 crore. The company’s share price on the Bombay Stock Exchange today rose 1.4 per cent, to close at Rs 2,419.10.

The company got orders worth Rs 59,031 crore in 2009-10, compared to Rs 59,678 crore in the previous year. Orders from the private sector, for capacity of 14,689 Mw, were the highest-ever. The total order book was Rs 1,43,800 crore, Rao said.

About planned capital expenditure in 2010-11, he said, “We would maintain the same level of capital expenditure as in 2009-10.” The capex in 2009-10 was Rs 1,767 crore, against Rs 1,082 crore in the previous year.