BHEL secures Rs 774-cr contract

Bharat Heavy Electricals (BHEL), the country's largest power equipment maker, today said it has secured Rs 774 crore order from oil exploration company ONGC to supply onshore drilling rigs.

The contract envisages manufacture and supply of six onshore drilling rigs, a company statement said.

While the mechanical equipment will be manufactured by BHEL’s Hyderabad plant, the electricals (like motors) will be manufactured by the company’s Bhopal plant.

Markets analysts feel this order would further boost the sector sentiments.The current order-book of the company stands at Rs 1,46,500 crore.

BHEL has so far supplied 84 rigs, of which 71 rigs have been supplied to ONGC and 13 to Oil India.

For ONGC, the power equipment major has also carried out refurbishment and upgradation of 33 onshore drilling rigs and is in the process of completing seven more rigs.

BHEL is engaged in engineering, manufacturing and supplying products and systems to core sectors.

They include power generation, transmission and distribution, transportation, defence and industries like metallurgical, petrochemicals, refinery, fertilisers, paper, cement, etc., besides oil exploration and production.

In December last year, BHEL made its entry in the Ukrainian market with an order for a Steam Turbine Generator (STG) package.

The contract for 27 MW STG package was placed on BHEL by one of the World’s leading steel majors, ArcelorMittal.

The power generating equipment will help meet the captive power requirements of ArcelorMittal’s steel plant at Kryviy Rih in Ukraine.

The company recently commissioned India’s first 1200 kV Ultra High Voltage Alternating Current (UHVAC) Transformer at Bina in Madhya Pradesh.

Shares of the company fell by 4.88% to close at Rs 289.15 in an overall weak market.