Bharat Heavy Electricals Limited (BHEL), India's largest power equipment manufacturer, has received an order worth Rs 1155 crore from GVK Power Limited, for setting up 2x270 MW thermal power generating units at Goindwal Sahib coal fired Thermal Power Project in Tarn Taran, Punjab.
The state run BHEL's scope in the present contract envisages design, engineering, manufacture, supply, erection and commissioning of steam turbines, generators, boilers and associated auxiliaries.
This is the second order bagged by BHEL for the 270 MW units, which are schedule to be synchronized during the XI Plan Period, ending March 2012.
Earlier this week, the company has bagged an order worth Rs 140 crore from UAE-based company, for supplying two gas turbine generating units of 42 MW each to International Energy Resources.
ref:
http://www.stockwatch.in/bhel-pockets-order-worth-rs-1155-crore-gvk-power-21123
Sunday, August 31, 2008
Monday, August 25, 2008
NTPC-Bhel JV to rival private firms’ salaries
To attract and retain talent, newly-created NTPC Bhel Power Projects Pvt. Ltd (NBPPL) will offer pay packets similar to those offered by the private sector, said a top company official.
“I don’t think there are many such entities with public sector participation in the country that offer competitive salaries,” said C.P. Singh, chairman and managing director of NBPPL, an equal joint venture (JV) set up by Bharat Heavy Electricals Ltd (Bhel) and NTPC Ltd in April this year. “The only other example we have is of Bhel’s joint venture with General Electric Co. (GE), called Bhel-GE Gas Turbine Services Pvt. Ltd that provides after-market services for GE’s gas turbines.”
Source:
http://www.livemint.com/2008/08/25234819/NTPCBhel-JV-to-rival-private.html
“I don’t think there are many such entities with public sector participation in the country that offer competitive salaries,” said C.P. Singh, chairman and managing director of NBPPL, an equal joint venture (JV) set up by Bharat Heavy Electricals Ltd (Bhel) and NTPC Ltd in April this year. “The only other example we have is of Bhel’s joint venture with General Electric Co. (GE), called Bhel-GE Gas Turbine Services Pvt. Ltd that provides after-market services for GE’s gas turbines.”
Source:
http://www.livemint.com/2008/08/25234819/NTPCBhel-JV-to-rival-private.html
Thursday, August 21, 2008
BHEL asked to form empowered committee
The Group of Ministers (GoM) on Infrastructure headed by Union Finance Minister P. Chidambaram has asked Bharat Heavy Electricals Limited (BHEL) to constitute an empowered committee that would look into international practises on capacity booking and recommend the best possible practise to be adopted.
The GoM had recently examined the ability of BHEL to supply plant equipment for creation of generation capacity of 78, 0000 MW during the XI Plan. It also looked into the issue of incorporation of the price escalation clause in all contracts and capacity booking for importing critical imported equipment in view of the long lead times involved in supply of the same.
The GoM has desired that the empowered committee would suggest procedural and other changes required to adopt the advance booking system. These will be approved by the board of BHEL in due course. The empowered committee will also take decisions on capacity building in accordance with the above approved policy. BHEL will also examine the possibility of diverting material to other users to avoid cancellation charges, if any such eventuality arises. The GoM was of the view that these business decisions were necessary for BHEL to compete with other entities in this business.
On the issue of price escalation, it was decided that BHEL will, in all future contracts, incorporate a price variation clause as has been done by NTPC, which has already been accepted by the vendors. To enable efficient execution of power projects, it was necessary for BHEL and sub contractors to be suitably compensated for abnormal price increase. In each case, a committee of 4 to 5 persons including technical and financial heads of the project will make recommendations on price increase due to abnormal increase in price of raw material, components or other factors.
Source: http://www.hindu.com/2008/08/22/stories/2008082255591600.htm
The GoM had recently examined the ability of BHEL to supply plant equipment for creation of generation capacity of 78, 0000 MW during the XI Plan. It also looked into the issue of incorporation of the price escalation clause in all contracts and capacity booking for importing critical imported equipment in view of the long lead times involved in supply of the same.
The GoM has desired that the empowered committee would suggest procedural and other changes required to adopt the advance booking system. These will be approved by the board of BHEL in due course. The empowered committee will also take decisions on capacity building in accordance with the above approved policy. BHEL will also examine the possibility of diverting material to other users to avoid cancellation charges, if any such eventuality arises. The GoM was of the view that these business decisions were necessary for BHEL to compete with other entities in this business.
On the issue of price escalation, it was decided that BHEL will, in all future contracts, incorporate a price variation clause as has been done by NTPC, which has already been accepted by the vendors. To enable efficient execution of power projects, it was necessary for BHEL and sub contractors to be suitably compensated for abnormal price increase. In each case, a committee of 4 to 5 persons including technical and financial heads of the project will make recommendations on price increase due to abnormal increase in price of raw material, components or other factors.
Source: http://www.hindu.com/2008/08/22/stories/2008082255591600.htm
Wednesday, August 20, 2008
India's BHEL Enters Vietnam for $50 Million Hydropower Project, an Industrial Info News Alert
Bharat Heavy Electricals Limited (BOM: 500103) (BHEL) (Mumbai) recently forayed into Vietnam with a $50 million contract to construct a 200-megawatt (MW) hydroelectric power plant in the country. The contract will be funded through the line of credit of $45 million extended in January this year by the Indian government to its Vietnamese counterpart. The funds will be administered by the Export Import Bank of India (Mumbai).
ref:
ref:
Tuesday, August 19, 2008
BHEL targets 6-fold jump in export earnings by 2012
Bharat Heavy Electricals Ltd has set an ambitious target to increase earnings from exports six-fold to Rs 8,000 crore in the next four years.
"We are targeting our exports to touch Rs 8,000 crore mark by the end of the current plan (2007-2012) period," BHEL Chairman and Managing Director K Ravi Kumar told PTI.
To support its endeavour to increase presence in the international market, BHEL is also looking at acquiring companies abroad mainly to augment technological skills. The target countries are Europe and the US, he said, admitting that the company was in talks with some firms.
He, however, declined to give details about the foreign companies saying they are bound by non-disclosure agreement.
Asked about the areas in which BHEL is looking for acquisitions, the CMD said overseas acquisition will be in the areas of transportation equipment and fans and the company is in talks with a couple of firms abroad.
"Our success record is very poor in this segment, but if we can acquire some companies, we may use their technology for manufacturing in our domestic facilities also," Ravi Kumar said.
He, however, admitted that BHEL's earlier model was not right. "We are planning to engage global consultants to advise us on such issues," he said.
It had earlier set aside Rs 10,000 crore for overseas acquisitions and a separate unit was also created within the company to oversee these operations but could not make any headway in the last two years. PTI
source:
http://www.ptinews.com/pti%5Cptisite.nsf/0/B9C6A4DB5929A4A2652574AA003BD299?OpenDocument
"We are targeting our exports to touch Rs 8,000 crore mark by the end of the current plan (2007-2012) period," BHEL Chairman and Managing Director K Ravi Kumar told PTI.
To support its endeavour to increase presence in the international market, BHEL is also looking at acquiring companies abroad mainly to augment technological skills. The target countries are Europe and the US, he said, admitting that the company was in talks with some firms.
He, however, declined to give details about the foreign companies saying they are bound by non-disclosure agreement.
Asked about the areas in which BHEL is looking for acquisitions, the CMD said overseas acquisition will be in the areas of transportation equipment and fans and the company is in talks with a couple of firms abroad.
"Our success record is very poor in this segment, but if we can acquire some companies, we may use their technology for manufacturing in our domestic facilities also," Ravi Kumar said.
He, however, admitted that BHEL's earlier model was not right. "We are planning to engage global consultants to advise us on such issues," he said.
It had earlier set aside Rs 10,000 crore for overseas acquisitions and a separate unit was also created within the company to oversee these operations but could not make any headway in the last two years. PTI
source:
http://www.ptinews.com/pti%5Cptisite.nsf/0/B9C6A4DB5929A4A2652574AA003BD299?OpenDocument
BHEL lines up $2.5 bn investment in next 4 years
BHEL announced on Thursday (14 Aug 2008), an investment of $2.5 bn (over Rs 10,000 crore) in the next four years to ramp up capacity to meeting the growing electricity needs.
"We will be investing Rs 5,000 crore in the first phase till December 2009 to reach 15,000 MW capacity. Besides, the Board has also approved an investment of similar amount to take the capacity to 20,000 MW by 2012," BHEL CMD K Ravi Kumar told PTI.
The investment is in line with the order book of the company, which has crossed the 1,00,000 mark and is still growing.On the issue of delay on part of BHEL to supply the equipments, Ravi said, BHEL was not responsible for it as most of the projects which have been facing time overrun are due to changes in the parameters. "Any change in the parameters requires a complete redesigning of the project and that causes delay sometimes," he said.
On the overseas expansion, the company is looking for acquisitions and is likely to appoint global consultants to advise them. Earlier BHEL had set aside Rs 10,000 crore for overseas expansion and were scouting for companies on its own. BHEL had earlier formed a separate unit for the same but the company did not take off, "Our model was perhaps not right, we should have a global consultant to advice us," Kumar said.
source:
http://economictimes.indiatimes.com/News/News_By_Industry/Indl_Goods__Svs/Engineering/BHEL_lines_up_25_bn_investment_in_next_4_years/articleshow/3364602.cms
"We will be investing Rs 5,000 crore in the first phase till December 2009 to reach 15,000 MW capacity. Besides, the Board has also approved an investment of similar amount to take the capacity to 20,000 MW by 2012," BHEL CMD K Ravi Kumar told PTI.
The investment is in line with the order book of the company, which has crossed the 1,00,000 mark and is still growing.On the issue of delay on part of BHEL to supply the equipments, Ravi said, BHEL was not responsible for it as most of the projects which have been facing time overrun are due to changes in the parameters. "Any change in the parameters requires a complete redesigning of the project and that causes delay sometimes," he said.
On the overseas expansion, the company is looking for acquisitions and is likely to appoint global consultants to advise them. Earlier BHEL had set aside Rs 10,000 crore for overseas expansion and were scouting for companies on its own. BHEL had earlier formed a separate unit for the same but the company did not take off, "Our model was perhaps not right, we should have a global consultant to advice us," Kumar said.
source:
http://economictimes.indiatimes.com/News/News_By_Industry/Indl_Goods__Svs/Engineering/BHEL_lines_up_25_bn_investment_in_next_4_years/articleshow/3364602.cms
Bhel can't stand losing orders to Chinese firms - CMD
Competition from home-grown private sector companies isn't all that bad, but losing orders to Chinese firms is what makes state-run power equipment supplier Bhel feel miserable, admits its Chairman and Managing Director K Ravi Kumar.
"I don't mind competition from private domestic players, but I feel bad if the order is won by any Chinese company," he told PTI, alluding to the 18,000 Mw worth equipment orders that the PSU has lost to Chinese companies.
Bhel also recently lost an order for supplying 800 Mw super critical technology to Andhra Pradesh Generation Company (APGENCO) to domestic company L&T-Mitsubishi Heavy Industries.
In India, International Competitive Bidding (ICB) route is strictly adhered to by the companies who bid for supplying equipments to the power projects. Whereas, there is no such system in China.
Asked whether Bhel lost orders despite ICB, Ravi Kumar said: "We have expertise for supplying equipments for 250 and 500 Mw but in between suddenly the norms were changed to 300 and 600 Mw only to accomodate Chinese firms. But this norm has now been removed."
But in the process, Bhel lost orders worth 18,000 Mw from private players.
Bhel, which has joined hands with French equipment maker Alstom for manufacturing 800 Mw in the super-critical technology, is bidding aggressively and is hoping to get orders in this in the near future.
source:
http://www.business-standard.com/india/storypage.php?tp=on&autono=44811
"I don't mind competition from private domestic players, but I feel bad if the order is won by any Chinese company," he told PTI, alluding to the 18,000 Mw worth equipment orders that the PSU has lost to Chinese companies.
Bhel also recently lost an order for supplying 800 Mw super critical technology to Andhra Pradesh Generation Company (APGENCO) to domestic company L&T-Mitsubishi Heavy Industries.
In India, International Competitive Bidding (ICB) route is strictly adhered to by the companies who bid for supplying equipments to the power projects. Whereas, there is no such system in China.
Asked whether Bhel lost orders despite ICB, Ravi Kumar said: "We have expertise for supplying equipments for 250 and 500 Mw but in between suddenly the norms were changed to 300 and 600 Mw only to accomodate Chinese firms. But this norm has now been removed."
But in the process, Bhel lost orders worth 18,000 Mw from private players.
Bhel, which has joined hands with French equipment maker Alstom for manufacturing 800 Mw in the super-critical technology, is bidding aggressively and is hoping to get orders in this in the near future.
source:
http://www.business-standard.com/india/storypage.php?tp=on&autono=44811
Friday, August 15, 2008
BHEL Announces Rs.10K Cr. Investment For Capacity Expansion
Bharat Heavy Electricals, the power equipment major announced an investment of over Rs.10, 000 crores in the next four years to ramp up capacity to meet the growing electricity needs.
BHEL's Chairman and Managing Director, K Ravi Kumar reportedly said that the company would invest Rs.5, 000 crores in its initial phase till December 2009 to reach 15,000 MW capacity. He said that the Board has also approved an investment of similar amount to take the capacity to 20,000 MW by 2012.
The report said that on the overseas expansion, the company is looking for acquisitions and is likely to appoint global consultants to advise them. Earlier, BHEL had set aside Rs.10, 000 crores for overseas expansion and were scouting for companies on its own.
Ref: http://www.rttnews.com/ArticleView.aspx?Id=685289&SMap=1
BHEL's Chairman and Managing Director, K Ravi Kumar reportedly said that the company would invest Rs.5, 000 crores in its initial phase till December 2009 to reach 15,000 MW capacity. He said that the Board has also approved an investment of similar amount to take the capacity to 20,000 MW by 2012.
The report said that on the overseas expansion, the company is looking for acquisitions and is likely to appoint global consultants to advise them. Earlier, BHEL had set aside Rs.10, 000 crores for overseas expansion and were scouting for companies on its own.
Ref: http://www.rttnews.com/ArticleView.aspx?Id=685289&SMap=1
BHEL reports Rs 384.41 crore profit in 1st quarter
BHEL reports Rs 384.41 crore net profit for the quarter ended June 30, 2008, a rise of 33 per cent compared with the same period last fiscal. It had registered a net profit of Rs 288.91 crore for the year-ago period.
Its income rose to 31.77 per cent at Rs 4,703.55 crore from Rs 3,569.56 crore in the same period last year, a company statement has said. - PTI
source:
http://www.thehindubusinessline.com/businessline/blnus/26141406.htm
Its income rose to 31.77 per cent at Rs 4,703.55 crore from Rs 3,569.56 crore in the same period last year, a company statement has said. - PTI
source:
http://www.thehindubusinessline.com/businessline/blnus/26141406.htm
Tuesday, August 5, 2008
BHEL secures contract worth Rs 200 crore from Vietnam firm
Bharat Heavy Electricals Limited (BHEL) has informed that it has secured a contract worth Rs 200 crore from a Vietnamese firm for its Hydro Power Project. The order has been placed by Nam Chien Hydropower Joint Stock Company of Vietnam, a state-owned company, with Song Da Corporation, one of the largest companies under the Ministry of Construction and Petro-Vietnam, the state owned giant Oil and Gas group, as major stakeholders. The contract envisages design, engineering, manufacture, supply and supervision of installation and commissioning of the complete Electro-mechanical equipment package for the hydro power project comprising two Pelton type hydro generating units of 100 MW each. The major equipment to be supplied for the project includes hydro turbines, generators, transformers, controls, monitoring and protection system and switchgear. The project is located in Muong La, 350 kilometres north of Hanoi and is slated to be completed by end-2010.
The capital good sector is presently going under pressure but on its reverse, market analysts are looking very optimistic and bullish on the counter. They have suggested 'Buy' call on BHEL as the company seems to have good prospects and advice investors to remain invested.
The counter has support at 1600 levels and the investors can look for a target of Rs 2100 levels in the long term.
source:
http://www.topnews.in/bhel-secures-contract-worth-rs-200-crore-vietnam-firm-256731
The capital good sector is presently going under pressure but on its reverse, market analysts are looking very optimistic and bullish on the counter. They have suggested 'Buy' call on BHEL as the company seems to have good prospects and advice investors to remain invested.
The counter has support at 1600 levels and the investors can look for a target of Rs 2100 levels in the long term.
source:
http://www.topnews.in/bhel-secures-contract-worth-rs-200-crore-vietnam-firm-256731
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