BHEL, Italian co in race for Rs 1,300 cr NLC order

Bharat Heavy Electricals Ltd (BHEL) and the Italian power major, Ansaldo, are in the race for supplying boilers to Neyveli Lignite Corporation’s Tuticorin project. The value of the order would be around Rs 1,300 crore.



A joint venture of Neyveli Lignite Corporation (NLC) and the Tamil Nadu Industrial Development Corporation (TIDCO) of the Tamil Nadu Government is investing Rs 4,950 crore in the 1,000-MW, coal-fired thermal project. NLC has 89 per cent stake in it.

BHEL wins Rs 1,150 cr contract in Punjab from HPCL, Mittal

The value of boilers and turbines for the project works out to around Rs 2,200 crore. NLC invited ‘expression of interest’ for each equipment. BHEL was the sole respondent for supplying the turbines, whose value would be around Rs 900 crore. BHEL and Ansaldo have shown interest in supplying the boilers.

“We will shortly open the technical bids, after which we will open the financial bids,” V Sethuraman, Director-Power, NLC, told Business Line today.

NLC’s Chairman and Managing Director, S Jayaraman, said that the project would not use supercritical boilers, which, though costlier, are said to be more energy efficient.

The Tuticorin project is NLC’s first foray into coal-fired power plant and as such the company would not like to go in for the supercriticals, whose performance is yet to be experienced in India, he said.

However, for the other project on the drawing board — the 2,000-MW Hirma project in Orissa — NLC may opt for supercritical boilers, he said.

Jayaraman said that the Chinese power equipment manufacturers had not responded to NLC’s invitation for Expression of Interest.

Sources in the company said that this was probably because the Chinese suppliers are experts only in producing equipment for 600 MW units, where they are cheaper because of the standardised design.

ref:
http://sify.com/finance/fullstory.php?id=14682474

BHEL bags Rs 1,150 crore contract in Punjab

Bharat Heavy Electricals Limited (BHEL) on Monday said it has won Rs 1,150 crore turnkey contract for setting up an energy efficient 153 MW captive power plant at Bhatinda in Punjab.

The Rs 1,150 crore order has been placed on the company by HMEL, a joint venture of HPCL and Mittal Energy Ltd.

"Under international competitive bidding (ICB), the company won the contract to set up environment-friendly 153 MW captive power plant at the upcoming Guru Gobind Singh Refinery at Bhatinda," a company release said.

The designing, engineering, manufacturing, supply, erection and commissioning work of the captive power plant in addition to complete civil works would be done by BHEL, it said.

The 153 MW gas turbine-based combined cycle power plant to be commissioned in a period of 30 months would meet the power and process steam requirement of the upcoming refinery.

BHEL's plants in Trichy, Ranipet, Bhopal, Jhansi and the Electronics Division in Bangalore would supply the equipments for the project.

The civil works, erection and commissioning of the plant would be carried out by BHEL's Power Sector-Northern Region.

BHEL has so far supplied and commissioned more than 700 steam turbine and gas turbine-based plant for industries such as metal, paper, sugar, cement and process industries such as refineries, petrochemicals, fertiliser in both domestic and overseas marke t. - PTI


Ref:
http://www.thehindubusinessline.com/businessline/blnus/03261606.htm

BHEL Research and Development spend almost Doubled

BHEL spent over Rs.4,640 Million on R and D efforts, 83 per cent more than the previous year on top of 68 per cent growth over 2005 06. In fact, the R and D spend at 2.14 per cent of the turnover, is among the highest in India in its kind of industry.

A notable achievement of fiscal 2007 08 has been the significant growth in Intellectual Capital with around one Patent/Copyright filed every alternate working day. BHEL filed 175 patents and copyrights during the year, enhancing the companys intellectual capital to 664 patents and copyrights filed, which are in productive use in the companys business.

In addition, BHELs fifth World class Centre of Excellence for Intelligent Machines and Robotics is being established, aimed at consolidating its strengths in crucial technology areas, developing cutting edge technologies and improving manufacturing processes.

New products and systems developed during the year for various infrastructure sectors of the economy include, Indias largest rating 7161 kW Pressurised Squirrel Cage Induction Motor, largest size 220 Watt PV Modules, Traction Motor for 350 HP Diesel Electric Multiple Unit against an export order of 20 numbers for Angolan Railways, higher rating 1430 kVA Brushless Alternator for oil rig application and the first of its kind in the world HVDC Disc Insulators of 320kN / 420kN rating for application in 800 KV HVDC transmission systems, among others.

Reinforcing its commitment to conservation of natural resources, BHEL has developed a new variant of 500 MW Steam Turbine. This design improves efficiency and saves coal consumption by around 8,200 Tonnes annually. This design is being commercialised in 11 sets of 500 MW being supplied and commissioned countrywide.

R and D and technology development are of strategic importance to the company as it operates in a competitive environment where technology is a major factor. BHELs R and D programme focuses on areas like state of the art control and instrumentation systems, clean coal technologies, improved T and D products/systems, high efficiency silt resistant hydro turbines and improved transportation systems, etc.

source:
http://machinist.in/index.php?option=com_content&task=view&id=1273&Itemid=2

BHEL records Rs 2,936 crore turnover from in-house R&D

Bharat Heavy Electricals on Thursday said its in-house research and development efforts have contributed Rs 2,936 crore to the total turnover of the public sector company.

Nearly 14 per cent of the total turnover of Rs 21,608 crore has been achieved through the products and systems developed by in-house research and development (R&D) efforts, a company release said.

Bhel invested over Rs 464 crore on R&D efforts in 2007-08, 83 per cent more than the previous year.

The company filed 175 patents and copyrights during the year. It has developed a new variant of 500 MW steam turbine to improve efficiency and save coal consumption by around 8,200 tons annually, the release said.

The company recorded a net profit of Rs 2,815 crore in 2007-08, a 16.6 per cent rise from the previous year.

The company doubled its investment on augmentation of manufacturing capacity and modernization of facilities to Rs 726 crore during 2007-08, against Rs 362 crore in 2006-07.

BHEL plans to invest Rs 4,200 crore in the 11th-Plan period. The amount would be utilised towards enhancing production of thermal, gas, hydro and nuclear sets, it said.

Besides, the company seeks to produce high rated nuclear sets, 765kV transformers and other equipments.

Source:
http://economictimes.indiatimes.com/News_by_Industry/BHEL_records_Rs_2936_cr_turnover/articleshow/3043717.cms

Absorb apprentices, HC directs BHEL

The Madurai bench of the Madras High Court has directed Bharat Heavy Electricals Limited, Tiruchirapalli, to absorb apprentices who had been trained and given National Trade Certificate under various trades, including fitter and welder.

Dismissing an appeal filed by BHEL, Tiruchirapalli, Justices P K Mishra and P Murugesan said there was no need to interfere in the single judge's order that apprentices (petitioners) should be absorbed.

On BHEL counsel's argument that the management was following a new recruitment policy under which advertisements should be put out for recruitment, the bench said the apprentices had been trained much earlier on the condition that they would be absorbed.

The Ranipet unit of BHEL had also absorbed the apprentices after training. The employment policy itself had been that trainees be inducted as Grade B III employees, they said.

The BHEL ex-apprentices association submitted that BHEL was making efforts to recruit various people as fitters and welders without regularly employing them. Till the previous batch, BHEL recruited only trained hands and there was no justification to deny such employment to duly trained persons, they contended

source:
http://economictimes.indiatimes.com/News/News_By_Industry/Jobs/Absorb_apprentices_HC_directs_BHEL/articleshow/3040683.cms

BHEL gets award for Excellence in Cost Management 2007

PTI reported that Bharat Heavy Electricals Limited has won the 'ICWAI National Awards for Excellence in Cost Management 2007.'

The annual award is presented by the Institute of Cost & Works Account of India to corporate entities for excellence in cost, quality and delivery.

During 2007, BHEL recorded the highest ever turnover of INR 21,608 crore, crossing the INR 20,000 crore mark for the first time. It aims to become an INR 45,000 crore firm by 2011-12 and has unveiled a 'Strategic Plan 2012' that would enable it to grow at an annual growth rate of 20%.

Source:
http://steelguru.com/news/index/2008/05/14/NDUyOTg%3D/BHEL_gets_award_for_Excellence_in_Cost_Management_2007.html

BHEL becoming stronger and bigger

World over, companies starting from small units become bigger and stronger through strategic planning. Long-term strategic planning includes diversification, acquisition and merger on a sustained basis. This kind of planning started in BHEL in the '70s when HEIL, Bhopal was merged with BHEL to form a single corporation in the power sector - BHEL. Also, two sick units of Karnataka Government were acquired by BHEL and rechristened as Electronic Division and Electro-porcelain Division - both at Bangalore.
Only recently, BHEL and NTPC joined hands to form a Joint Venture Company. And now comes the good news of BHEL having acquired Visakhapatnam-based Bharat Heavy Plate & Vessels. Surely BHPV will emerge as a successful unit of BHEL - thanks to the dynamic, supportive and forward-looking management style of BHEL. BHEL is undoubtedly a highly professional organisation which is reckoned among the top ten global giants in the power field.

All that BHEL needs is sustained support from the Government of India which is surely the agenda of any government as far as its public sector undertakings are concerned. Governments of the most developed countries, namely, USA, Germany, France, UK, Japan etc do support their public sector enterprises because PSEs have been set up with public money. On the same analogy, instead of running down the PSEs, Government should look into the working of each enterprise, help loss-making enterprises into becoming profit-making units and profit-making units to become still more bigger and stronger. Letting some major PSEs, including BHEL, without a regular CMD for months and even years is not right. Why can't concerned Ministries initiate timely action for processing the appointment of regular CMDs three months before the retirement or superannuation of CMDs which fact is known to everyone in the Ministry? PMO must question the concerned Ministries for any failures on this score. PMO must immediately take stock of such situations and get the situation rectified in the larger interest of Public Sector functioning.

reported by: CK Sardana, Bhopal



source:
http://www.centralchronicle.com/20080514/1405322.htm

Bhel to build India's largest coal-based power plant

State-run Bharat Heavy Electricals on Monday said it would set up Integrated Coal Gasification Combined Cycle (IGCC) power plant at Vijaywada with Andhra Pradesh Power Generation Corporation (APGenco).

"Bhel has signed a Memorandum of Understanding with APGenco to set up country's biggest 125 MW IGCC power plant at Vijaywada," a company release said.

"Bhel has earmarked on several initiatives to meet the growing demands of the country's power sector," Bhel chairman and managing director K Ravi Kumar said. The state-run company has also formally taken over Visakhapatnam-based Bharat Heavy Plate and Vessels (BHPV). "We are confident of meeting the capacity addition targets for the Eleventh Plan period, with BHPV complimenting our business," Kumar said.

BHPV's turnover is expected to cross Rs 1,000 crore in five years and the capital expenditure of the company for three years is Rs 236 crore.

The Andhra Pradesh government has extended various concessions for the revival of the BHPV. The concessions include the transfer of title of land measuring 386.73 acres in possession of the BHPV as gift title deed in favour of BHPV and also waiver of registration and stamp duties. Waiver of Sales Tax arrears of Rs 42.16 crore and waiver of Nala Tax of Rs 43 lakh.

"Today, we are crossing a milestone in power generation technology with the signing of MoU between APGenco and Bhel for setting up a 125 MW IGCC plant at Vijaywada," Union minister for heavy industries and public enterprises Santosh Mohan Dev said.

Bhel plans to increase its power equipment manufacturing capacity from 10,000 MW to 15,000 MW per annum by 2009.

Source:
http://timesofindia.indiatimes.com/Business/India_Business/Bhel_to_build_Indias_largest_coal-based_power_plant/articleshow/3034228.cms

Green stakes: NTPC, Bhel seek larger chunk of carbon credit pie

The world can breathe easy. India’s state-owned power industry — often clubbed with the big contributors of greenhouse gas emissions — is betting big on green stakes to clean up the air and grab a larger pie of the carbon credit market.

Pointers to a concerted move in this direction come from generation utility NTPC, which accounts for half of the electricity produced, and the country’s biggest power equipment manufacturer Bhel.

In a first-of-its-kind initiative, penned by India's 'green guru' R K Pachauri and pushed by junior power minister Jairam Ramesh, NTPC will commit 0.5% of its annual net profit, or roughly Rs 30 crore, to fund research in climate change. This will cover issues ranging from developing clean coal technology with a view to reducing greenhouse gas emissions from coal-fired plants and consumption of water.

Western environmentalists have identified old plants of generation utilities burning coal in surging economies such as India and China as major contributors of greenhouse gas emissions and blamed them for rapid deterioration in air quality. Coal-fired units account for nearly 65% of India’s generation capacity, forcing utilities struggling to keep pollution under check from domestic coal with 35-40% ash content. The initiative will help develop cheap technology.

In the second instance, Bhel has signed a Rs 950 crore agreement with APGENCO, India’s third biggest thermal power producer, to set up a 125 mw power plant at Vijaywada using IGCC (integrated gasification combined cycle) technology that Bhel has been working on for two decades. The power equipment maker has been running a 6 mw pilot plant on this technology at Trichy since 1983 and is now being raised to commercial size.

The technolgy cuts greenhouse gases, reduces water consumption by 40%, produces lower solid waste production and has operating efficiency of around 40%. It also offers a technical pathway for cost-effective separation of carbon dioxide and co-production of hydrogen.

Bhel’s technology is unique as it extracts these figures from Indian coal as against low-ash coal burnt by plants using this technology in US and Spain.

"This project has major implications for India’s energy strategy that has to reckon seriously with international concerns on global warming arising out of expanding coal use. There are seven or eight IGCC plants in the 250-300 mw range in other countries like the US but they all use low-ash coal," Ramesh told TOI after signing the agreement in Visakhapatnam. The deal was signed in the presence of finance minister P Chidambaram and minister for heavy industry Santosh Mohan Dev.

Bhel will contribute roughly Rs 420 crore and the balance Rs 530 crore will come from APGENCO. The project is scheduled for commissioning in mid-2011. APGENCO is putting up the country’s first twin supercritical 800 mw units at Krishnapattnam in Nellore district. Bids are being finalised. It was at Vijaywada thermal power plant complex that Bhel’s 210 mw units were first proven a technological success over a quarter of a century ago.


source:
http://timesofindia.indiatimes.com/Business/India_Business/Green_stakes_NTPC_Bhel_seek_larger_chunk_of_carbon_credit_pie/articleshow/3030958.cms

BHEL to takeover BHPV on May 10

Bharath Heavy Plates and Vessels Limited (BHPV), a Central public sector undertaking which was under Board for Industrial and Financial Reconstruction (BIFR), will be taken over by BHEL.

Chief Minister Y S Rajasekhara Reddy will participate in the takeover of the BHPV by BHEL at Visakhapatnam on May 10.

The State government has extended various concessions for the revival of the BHPV.

The concessions include the transfer of title of land measuring 386.73 acres in possession of the BHPV as gift title deed in favour of BHPV and also waiver of registration and stamp duties. Waiver of Sales Tax arrears of Rs 42.16 crore and waiver of Nala Tax of Rs 43 lakh.


Source:
http://economictimes.indiatimes.com/Power/BHEL_to_takeover_BHPV_on_May_10/articleshow/3016502.cms

BHEL bags order from Chattisgarh

BHEL has secured orders from Chattisgarh State Electricity Board for supply and instalation of Rs 3.368 crore Main Plant Package at two power projects in Chhattisgarh, involving three coal-based units of 500 MW each.

The orders envisaged setting up of one unit of 500 MW at Korba West Thermal power project and two units of 500 MW each at the upcoming Marwa thermal power project, a BHEL press release said here.

Stated for synchronisation during the 11th Plan, these units will add 36 million units every day to the grid on commissioning.

BHEL's scope of work in the contract includeed design, engineering, manufacture, supply, erection and commissioning of Steam Turbines, Generators, Boilers (from Tiruchirappalli Unit), associated Auxiliaries, Piping and electricals besides state of the art Controls and Instrumentation which would be produced by BHEL Bangalore unit, it said.


Source:
http://www.hindu.com/thehindu/holnus/006200805070940.htm

Escalating steel prices likely to affect 60% of Bhel’s order book

A delay by Bharat Heavy Electricals Ltd, or Bhel, in meeting its order book commitments may cost the company severely as steel prices have escalated by 40% since the fixed price contracts were signed.
Since Bhel cannot pass on the rise in material costs to the consumer, the power equipment manufacturer has no option but to absorb the increase in input costs or mitigate part of it through a slew of cost control measures.
Heading north: A steel processing unit in Hisar, Haryana. Though steel price will stabilize as the government has introduced an export tax, it will hurt the profit margins of companies such as Bhel, analysts say. (Photo: Rajeev Dabral/Mint)Bhel has an annual steel requirement of 600,000 tonnes.
“The sharp rise in steel prices will affect 60% of our present order book. Most of the times we work on fixed price contracts. When we had signed these orders (in 2003), the steel prices were at Rs17,000 per tonne. Today they are at Rs24,000 per tonne. We being a PSU (public sector undertaking) there is no provision to change the contract provisions for us or our subcontractors,” said a company executive, who is close to the developments but did not wish to be identified.
The company with a manufacturing capacity of 10,000MW per annum has a present order book position of 31,923MW. Bhel posted a net profit of Rs2,815 crore on a revenue of Rs21,608 crore in 2007-08 and ended the year with an order book worth Rs50,265 crore.
The executive, however, maintained that the profit margins at the company may not impact in the short run due to various steps taken by Bhel, but if steel prices did not soften then it was bound to have a long-term impact on the company’s profits.
“With the steel prices remaining at the current levels and if the power generation equipment prices remain at Rs4 crore per MW, our margins will certainly come under pressure. We are trying to contain costs, cutting down the material requirement. In order to take care of sharp escalation in steel prices we have an agreement with steel manufacturers in the country, but it is only for a year,” the executive said.
However, analysts maintain that Bhel would take a hit even in the short term.


more at:
http://www.livemint.com/2008/05/04224119/Escalating-steel-prices-likely.html

BHEL gets award from ICWAI

Bharat Heavy Electricals on Friday said it has won the 'ICWAI National Awards for Excellence in Cost Management 2007.'

The annual award is presented by the Instititute of Cost and Works Account of India (ICWAI) to corporate entities for excellence in cost, quality and delivery.

During the year, Bhel recorded the highest-ever turnover of Rs 21,608 crore, crossing the Rs 20,000 crore mark for the first time, the company said in a release.

The company aims to become a Rs 45,000-crore firm by 2011 -12 and has unveiled a 'Strategic Plan 2012' that would enable it to grow at an annual growth rate of 20 per cent.

Recently it joined hands with country's largest power producer NTPC Ltd to set up a joint venture to carry out engineering-procurement-construction (EPC) contracts for power Infrastructure projects as well as manufacture and supply of equipment in India and abroad.



source:
http://www.hindu.com/thehindu/holnus/006200805021524.htm

Bhel assured of contracts in central utilities

Bhel has been assured part of contracts for supplying ‘supercritical’ generation plants, of capacities ranging from 660 to 800 mw, as opposed to 250-500 mw, to Central generation utilities like NTPC and Damodar Valley Corporation.

NTPC will now go for bulk order for the first lot of 10 such plants. According to the guidelines approved by Prime Minister Manmohan Singh, NTPC will first offer an international competitive bidding for the equipment, in which Bhel will also participate.

In case Bhel does not emerge as the winner, it will have to match the lowest price quoted by the winner for getting orders, the ratio of which has been defined as per the capacity of the plants.

The guidelines say NTPC will float bulk tenders for seven units of 660 mw each. The lowest bidder will get orders for four plants, while Bhel if it is not the winner will get orders for three plants at the winning price.

It also said NTPC will work on four units of 800 mw each at Dharipalli in Orissa and Damodar Valley Corporation on two plants of 800 mw at Kodarma in Jharkhand so that bids for them can be invited. Bhel has been assured two units if it is not the winner.

Bhel has also been asked to firm up its joint venture with the Tamil Nadu utility for two 800 mw plants in Udangudi and pursue its bids for two units of 800 mw for the Krishnapattanam ultra-mega power project in Andhra Pradesh. This is aimed at ramping up its capacity in the 800 mw range.

NTPC and Bhel have also been asked to finalise two turbine generators of 660 mw for the Barh project in Bihar.
All contracts will come with the rider that the supplier will have to set up manufacturing facilities in India. In cases where a manufacturer already has capacity here, it will have to ramp up in accordance with the work orders

source:
http://timesofindia.indiatimes.com/Business/India_Business/Bhel_assured_of_contracts_in_central_utilities/articleshow/3003141.cms