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Chennai-based EPC major BGR Energy Systems has said that it is planning to bid for power projects outside India along with Chinese companies and Japanese major Hitachi. The company is looking at coal and gas-based projects in Middle East and South East Asia. Iraq is likely to be the first country from where the company may get its first overseas business.
Speaking to Business Standard, after announcing the commissioning of first phase of 2x600 MW Kalisindh Thermal Power Project in Rajasthan and 1x600 MW Mettur Thermal Power Station in Tamil Nadu, company's Director-Marketing A Swaminathan said, “We feel that the company has got enough expertise and capabilities to take up projects outside India”.
He added that the company is talks with few Chinese companies and Hitachi to bid for coal and gas-based power projects in Iraq and other Gulf Countries, Vietnam, Indonesia, Sri Lanka, Bangladesh and other South East Asian markets.
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“By end of this year we will get our first project, mostly from Iraq,” said Swaminathan.
The company hopes that in the next three years it will increase its turnover to Rs 8,000 crore, of which around 25-30% is expected to be from overseas business, said Swaminathan.
On the status of company's joint venture (JV) with Hitachi to manufacture turbine and boilers, Swaminathan said that the manufacturing plant will be ready by 2015.
“Originally we planned for 5,000 MW capacity, now it was scaled down to 3,000 MW in view of the market condition. During phase II, the remaining 2,000 MW will be taken up,” he said.
Investment in these projects was also reduced to Rs 2,700 crore from Rs 3,200 crore.
It may be noted, Hitachi has a 26% stake in the turbine JV and 30% stake in the boiler JV.
Commissioning of new projects
Commenting on Kalisindh Thermal Power Project at Rajasthan, Swaminathan said the first unit of 2X600 MW plant was commissioned on September 17th and the second unit will be ready in the next four months. The company was executing a Rs 5,164 crore EPC order and one of the project highlight was the World's tallest cooling towers – 202 mts.
The second major project, 1X600 MW Mettur Thermal Power Station has now completed the trail run and started its regular production. It may be noted the project was delayed for almost nine months due to issues like railway sidings and setting up of zero discharge plant. This will be the first 600 MW plant to be commissioned in the State.
BGR Systems bagged Rs 3,193 crore EPC order from the Tamil Nadu Electricity Board's subsidiary TANGEDCO for this project.
“We are hopeful that the project will be handed over to TANGEDCO on October 10th”, he said.
The project will come as big relief for the state, which is currently facing around 4,000 MW of power deficit.
