Wednesday, December 30, 2009

BHEL, China TBEA in talks for tie-up

China's Tebian Electric Apparatus Stock Co Ltd (TBEA) and Bharat Heavy Electricals Ltd are in talks to jointly manufacture equipment in India, the Mint newspaper reported citing the Indian firm's head.

"TBEA, who are the biggest in China, want to work together with us, BHEL Chairman B.P. Rao. told the paper. "There have been initial talks."

TBEA makes electric power transformers of up to 1,000 kilo volts, and BHEL has the capacity to make equipment of up to 400 kilo volts, the paper said, adding a tie-up with TBEA would allow BHEL to compete with likes of Siemens AG and ABB Ltd in the high-voltage segment.


ref:
http://www.moneycontrol.com/news/business/bhel-china-tbeatalks-for-tie-up_433069.html

Monday, December 28, 2009

Bhel set to miss target

Bharat Heavy Electricals Ltd (Bhel), the country's largest power equipment manufacturer, is set to miss its capacity addition target, which may delay power projects of companies such as NTPC and other state-run utilities by at least three months, according to sources.

Bhel had set a goal of increasing its manufacturing capacity to 15,000 mw by December 2009 from the existing 10,000 mw.

Over 90% of the thermal plant orders from government owned power companies such as NTPC are placed with Bhel.

"The management of the company has told us that they are facing some financial problem due to which delivery of some critical machinery has not been made by the foreign firms. They would need another 100 days to get their increased capacity to be in place," said a source in the power ministry.


ref:
http://www.dnaindia.com/money/report_bhel-set-to-miss-target_1328536

BHEL appoints O P Bhutani as Director

BHEL today said that it has appointed O P Bhutani (56) as the Director (Engineering, Research and Development) who assumed
charge from Monday.

Earlier, Bhutani was heading BHEL's International Operations division, one of the three business sectors of the company, as the Executive Director (International Operations), BHEL's press statement said here.

Bhutani, a mechanical engineer from Delhi College of Engineering and an MBA from University of Delhi, has 34 years of professional experience of working in various functions of BHEL including Marketing & Business Development.

He began his career with BHEL in January 1976 as an Engineer Trainee and after completion of training joined the Engineering function at the BHEL Haridwar plant.


ref:
http://economictimes.indiatimes.com/Corporate-Announcement/BHEL-appoints-O-P-Bhutani-as-Director/articleshow/5388658.cms

Monday, December 21, 2009

BHEL bags Rs 6.4 billion order for 270 MW unit in Jharkhand

Bharat Heavy Electricals Limited (BHEL) today said it had won a repeat order from Adhunik Power and Natural Resources Limited (APNRL) for the main plant package of the second new-rating unit of 270 MW at its thermal power project in Jharkhand.

The order, worth nearly Rs 6.4 billion, is for APNRL's greenfield power project in Jamshedpur district. The company had placed the order for the first 270 MW unit of the project also on BHEL.

According to a press release issued by the BHEL, the order comes close on the heels of an order for a 2x60 MW thermal power plant of Jindal India Thermal Power Limited (JITPL) and is testimony to the confidence reposed by independent power producers (IPPs) in BHEL's capabilities.

more at:
http://netindian.in/news/2009/12/21/0004497/bhel-bags-rs-64-billion-order-270-mw-unit-jharkhand

Tuesday, December 15, 2009

BHEL signs MoU with Nigerian govt; stk up

Bharat Heavy Electricals (BHEL) touched an intraday high of Rs 2,389.70 and an intraday low of Rs 2,340.15. At 10:13 am, the share was quoting at Rs 2,372.80, up Rs 18.20, or 0.77%.

BHEL signed MoU with Nigerian government for three 500 MW projects, reports CNBC-TV18 quoting, Sources.

BHEL Sources say Nigerian government order is seen worth about $ 2 billion. Nigeria government is finalising states for 3 coal-based units.

It was trading with volumes of 14,915 shares. Yesterday the share closed down 2.29% or Rs 55.20 at Rs 2,354.60.

more at:
http://www.moneycontrol.com/news/buzzing-stocks/bhel-signs-mounigerian-govt-stk-up_431069.html

Monday, December 14, 2009

Bhel plans to acquire Hungarian boiler firm

Bharat Heavy Electricals Ltd (Bhel) is planning to acquire Hungary-based boiler maker TGR to establish a manufacturing facility in Europe. This is part of the company’s strategy to acquire companies in Europe and the United States to ramp up its manufacturing capabilities, acquire updated technology and wider market access. Once this acquisition is complete, the company plans to finalise a few more.

TGR has a strategic importance for the public sector entity as its acquisition will give Bhel a manufacturing base in Europe, from where it can supply the equipment and provide other services in the region. This is even as the PSU is expanding its manufacturing capacity to 15,000 MW by March 2010 and 20,000 MW by March 31, 2012 from 10,000 MW at the end of 2008-09.


more at:
http://www.financialexpress.com/news/Bhel-plans-to-acquire-Hungarian-boiler-firm/554099/

BHEL gains on acquisition plans

Shares of BHEL have advanced by 1.5% to Rs2409

Shares of BHEL have advanced by 1.5% to Rs2409 after reports stated that the company’s unit plans to consider four-five companies as candidates for acquisition.

We are looking at investing Rs2.5-4bn for the acquisition, executive director, A V Krishnan was quoted as saying.

Last year, the unit acquired Bharat Heavy Plates and Vessels Ltd in Visakhapatnam, another public sector unit. “We are looking at a 100% take over and once it is acquired, it will become a subsidiary of BHEL,” he added.

Reports also stated that the company is in talks with L&T and Pipavav Shipyard to jointly build off-shore oil rigs. The company had earlier decided to quit its deep water oil rig business as it was unable to find a suitable partner due to investment constraints, added reports.


ref:
http://www.indiainfoline.com/Markets/News/News.aspx?NewsId=19677

Saturday, December 12, 2009

Bhel to generate 14,000 mw in 2010-11

Bharat Heavy Electricals Ltd (Bhel) will successfully commission plants to generate 14,000 mw of power in 2010-11 and also catch up with the requirements of the country on the power front, said BP Rao, Bhel chairman and managing director .

Rao said the power major has taken several steps to increase availability of site facilities, vendor base and develop internal technologies for production of castings and forgings. Rao informed that these steps were taken in addition to the main investment proposals of the company in three phases of which the second phase will be over by March 2010. This will equip Bhel to manufacture equipment for generating 15,000 mw a year, he added.


More at:
http://www.financialexpress.com/news/Bhel-to-generate-14-000-mw-in-2010-11/553407/

Bhel drafts aggressive M&A strategy

After its setback in the global acquisition race in the last few years, Bharat Heavy Electricals Ltd (Bhel) has once again set off on the road to acquire firms overseas. This time, the company is armed with a long-term focus on the M&A space by initiating the process of appointing a panel of advisors for an initial phase of two years.

By appointing a long-term panel of advisors, the company seeks to avoid any delay in bidding for an M&A target. Bhel is also trying to get enough time for the due diligence process in order to present a proper bid for the target firm. The move is a first in the country’s public sector. Till now, every public sector enterprise (PSE) appoints advisors as and when an opportunity for an M&A comes up.


Complete article at :
http://www.financialexpress.com/news/Bhel-drafts-aggressive-M-A-strategy/553062/

Thursday, December 10, 2009

BHEL to invest Rs 235 cr in Bharat Heavy Plates

Bharat Heavy Electricals Limited (BHEL) is planning to invest Rs 235 crore over the next two to three years in Bharat Heavy Plates and Vessels Limited (BHPV). It was acquired by BHEL last year. The investment will mainly go into modernising the plant and infusion of working capital.

B P Rao, chairman and managing director, BHEL who was here to flag off country’s first critical boiler said that BHPV, located in Visakhapatnam, Andhra Pradesh, is presently the engineering procurement and construction (EPC) unit for process industries. Going forward it would also manufacture ancillaries for BHEL.

The proposed investment includes procuring new machines and modernising and infusing working capital, he added.

Setting up a manufacturing unit would need massive greenfield investments and long gestation time, supporting an existing entity like BHPV makes better business sense where economies of scale can be achieved by enhancing the capacity with brownfield investments, according to BHEL’s earlier release.

The market for BHPV’s products, especially in process equipment and cryogenics, is expected to grow rapidly. BHPV has been handicapped due to the financial constraints in participating in some tenders, which would be mitigated once the financial restructuring is complete and BHEL takes over.

With BHEL, Tiruchy Unit is heavily booked with orders for boilers in the utility segment, BHPV can be developed as dedicated centre for industrial boilers.

It is expected that the turnover will cross Rs 1,000 crore in five years, according to a BHEL release

Ref:
http://www.business-standard.com/india/news/bhel-to-invest-rs-235-cr-in-bharat-heavy-plates/379179/

BHEL to recruit about 4,000 persons annually for 3 years

As part of expansion plans and embarking on certain new joint ventures, public sector BHEL is to recruit about 4,000 persons, including executive engineers annually, at least for the next three years, a top company official said today.

At present,there are 45,000 plus headcount in various BHEL units and the company plans to enhance it to 52,000-55,000 by the end of 2012, B Prasada Rao, Chairman and Managing director of the unit told reporters here last night.

ref:
http://economictimes.indiatimes.com/news/news-by-industry/jobs/BHEL-to-recruit-about-4000-persons-annually-for-3-years/articleshow/5321911.cms

Wednesday, December 9, 2009

BHEL's R&D develops HTSC transformers

Bharat Heavy Electricals Limited (BHEL) Corporate R&D Division has developed, manufactured and tested a High Temperature Superconducting (HTSC) Transformer.

The availability of bismuth-based HTSC wire commercially has opened new opportunities for the manufacturers of power system equipment world over, a BHEL release said here on Wednesday.

The new 1.0 MVA, Three phase 33/6.6 transformers have Higher efficiency, are smaller in size, weight and volume, can withstand twice the capacity overload without insulation damage or loss of useful life, have lower impedance and better voltage regulatio n capability than regular transformer and do not require cooling oil like conventional transformers, thereby eliminating the possibility of oil fires and related environmental hazards and provide more power per unit volume in existing substations, the re lease added.

The developed HTSC transformer has a conventional core at room temperature. HV and LV coils are made of HT superconductors immersed in liquid nitrogen, the release said. HTSC transformers are designed for greater current density than copper winding making the size of coil much smaller, the release added. - PTI



ref:
http://www.thehindubusinessline.com/blnus/02091560.htm

Tuesday, December 8, 2009

BHEL achieves significant breakthrough with first commercial order -Phase Shifting Transformer

Reposing faith in Bharat Heavy Electricals Limited (BHEL)’s capability to successfully introduce new technology products, Andhra Pradesh Power Generation Corporation Limited (APGENCO) has placed an order on BHEL for the country’s first Phase Shifting Transformer (PST).

Valued at Rs.27 Crore, the order entails installation of an indigenously-developed Phase Shifting Transformer, to be installed at APGENCO’s Kothagudem Thermal Power Station (KTPS) Stage-VI.

A Flexible AC Transmission System (FACTS) device, the PST is a combination of a shunt and a series transformer. It shall enable part power diversion from the existing 220 kV switchyard to the 400 kV switchyard, presently under construction at KTPS, thereby helping relieve the 220 kV lines from overloading. Significantly, this is a major development and has opened a new line of business for BHEL.

BHEL’s scope of work in the contract envisages design, manufacture, supply, civil works, erection, and testing & commissioning of the Phase Shifting Transformer in a schedule of 16 months.

more at :
http://www.dayafterindia.com/dec109/b1.html

Sunday, November 29, 2009

Bhel says no to a plant at Singur

The Buddhadeb Bhattacharjee government’s bid to get Bhel to set up a 1,600-MW power plant on the abandoned Nano factory land in Singur has

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been dealt a blow with the PSU describing the proposed project as ‘unfeasible’ and ‘not viable’.

Over a year after the Tatas shifted their small-car factory to Gujarat after resistance from Trinamool chief Mamata Banerjee, industries minister Nirupam Sen had proposed the power plant as an alternative. He wanted Bhel to set up the power plant in a joint venture with the Power Development Corporation Limited (PDCL), a state undertaking.

Accordingly, Bhel and PDCL officials inspected the site earlier this month. That the 997-acre plot — still in the possession of Tata Motors — remains in the eye of a political storm raging since 2006 became evident the very next day.

Mamata was quick to reiterate her counter proposal for the site — a wagon manufacturing unit with ancillaries in Dankuni. The mother project, she had said, would be connected to ancillaries by a dedicated railway track she promised to lay for goods trains to ply between Singur and Dankuni. Bhel’s refusal to go ahead with the project paves the way for the wagon unit proposed by her.

A letter to PDCL by a Bhel official cited technical, commercial and environmental grounds for refusing to enter into the proposed joint venture for the power plant.


Ref:
http://timesofindia.indiatimes.com/city/kolkata-/Bhel-says-no-to-a-plant-at-Singur-/articleshow/5280664.cms

Monday, November 23, 2009

BHEL wins Rs56bn Supercritical order in UP

Bharat Heavy Electricals Limited (BHEL) has secured a major order for setting up the upcoming 1,980 MW Prayagraj Thermal Power Project (TPP) with Supercritical parameters in Uttar Pradesh, involving three units of 660 MW each.



Valued at Rs56bn, the order for the greenfield power project, located at Bara in Allahabad district of Uttar Pradesh, has been placed on BHEL by Prayagraj Power Generation Co. Limited (PPGCL), a company owned by Jaiprakash Associates Limited (JAL).

more at:
http://www.indiainfoline.com/Markets/News/News.aspx?NewsId=15971

Thursday, November 19, 2009

No Bhel plant at Singur site

The West Bengal government’s efforts to urge Bharat Heavy Electricals Ltd (Bhel) to set up a thermal power plant at Singur seem to have come a cropper.

Heavy industries secretary Satyanarayan Dash on Thursday informed West Bengal chief secretary Ashoke Mohan Chakraborty of the inability of Bhel to set up a plant at the erstwhile Nano site. Dash told FE, “The West Bengal chief secretary met us to discuss the Bhel project. We acquainted him with the Bhel CMD view that the site was not suitable for a power plant.”

However, Bhel CMD BP Rao was not available for comment and Chakraborty dodged the press the whole day, declining to talk about the issue.

At a time when big projects are staying away from the state, the state government sought Centre’s intervention to expedite Bhel’s plans. It was also hoping the Centre would intervene in persuading Tata Motors to take a decision on the land.

The site, spread over 997 acres, is still leased to the Tatas. The state government, which had been pushing for the Bhel project at the site, has reportedly received a verbal request from railway officials for a coach manufacturing plant at the site as promised by railway minister Mamata Banerjee. She intended to set up a rail coach factory on the site if the state government handed over the land to the railways


ref:
http://www.financialexpress.com/news/No-Bhel-plant-at-Singur-site/543817/

Tuesday, November 17, 2009

BHEL Bhopal gets new Utra High Voltage Transformer Manufacturing Facility

Bharat Heavy Electricals Limited (BHEL) has set up a new Utra High Voltage (UHV) Transformer Manufacturing Facility at Bhopal in Madhya Pradesh. This new facility will enable BHEL to produce an additional 12,000 MVA of transformers per annum.

With this, the total installed transformer manufacturing capacity at BHEL’s Bhopal plant will go up to 30,000 MVA per annum while the total capacity of BHEL including its Jhansi plant will go up to 45,000 MVA. It is expected that Supercritical Thermal Power Plants of 800 MW and Nuclear Power Plants of 700 MW and above will boost the demand for Transformers manifold in the near future (nearly 1,20,000 MVA per year).
The new UHV transformer Block has a dust free and controlled atmosphere, air conditioned bays for winding works, pressurised bay for Core building and final assembly, EOT cranes for lifting loads up to 450 tons, Iso static Pressing Device for windings, Air Cushion Transport System for Movement of Equipment & Machinery and attached UHV Laboratory for testing Transformers up to 1,200 kV class.

The new unit was inaugurated by by Sh. Vilasrao Deshmukh, Union Minister for Heavy Industries & Public Enterprises in the presence of Sh. Shivraj Singh Chouhan, Chief Minister of Madhya Pradesh; Sh. Arun Yadav, Union Minister of State for Heavy Industries & Public Enterprises and Sh. Rajendra Shukla, Minister of Energy, Govt. of Madhya Pradesh.



more at :
http://machinist.in/index.php?option=com_content&task=view&id=2465&Itemid=2

Sunday, November 15, 2009

BHEL Mazdoor Sangh agitation from today

In protest against apathy towards burning problems of BHEL employees, BHEL Mazdoor Sangh has decided to launch agitation in second phase termed `Employees letter in the name of CMD' from Monday.
Under the agitation employees will convey their problems directly to Chairman and managing director. The problems of the employees for which they are demanding solution are wage revision pending from 3 years should be done immediately, employees of recognised Unions should be given democratic rights, like other units cash payment of overtime should given in BHEL Bhopal unit.
Since none of the BHEL Bhopal union is recognised and those which are going to united joint committee they have failed to mount pressure on management owing to their vested interests. At present those agitations which are going on in the name of wage revision that are because of ego problems therefore under the banner of BHEL Mazdoor Sangh thousands of employees will apprise the CMD of their problems by writing letter. Under this agitation every day hundreds of letters will be sent to CDM.



ref:
http://www.centralchronicle.com/viewnews.asp?articleID=19369

Thursday, November 12, 2009

Bhel may power Singur dream

The deserted Tata Motors site in Singur sprung to life and prominence again on Thursday when a team of senior officials from Bhel and West Bengal Power Development Corporation Ltd inspected the site for a 1600 MW power plant.

This is the third move by the state government after its tryst with Tata Motors and China automaker FAW to revive the industry dream that got buried in the anti-land acquisition stir spearheaded by Trinamool Congress chief Mamata Banerjee.

The flickering hope, however, came under a shadow by the end of the day when the Trinamool chief reiterated her demand for return of 400 acres to unwilling farmers.

If that happens, the government will have just 597 (of the 997 acre originally acquired) left to set up a power plant. Power experts held that this would not be enough to set up the 1,600 MW power plant.

The thumb rule is that one acre is needed for each megawatt of electricity generated. By that logic, the 597 acres of undisputed land, or even the total 997 acres, would not be not enough for the project. What's more, the land is in the possession of Tata Motors, though group chairman Ratan Tata made it clear during his last visit to Bengal that his company would not stand in the way of projects.

more at:
http://timesofindia.indiatimes.com/city/kolkata-/Bhel-may-power-Singur-dream/articleshow/5224705.cms

Wednesday, November 11, 2009

BHEL bags Rs 91 cr contract from UK firm

BHEL today said it has bagged a Rs 91 crore order from UK-based Power Engineers Contracting company to supply gas turbine generating unit for its Nasiryah power project in Iraq.

"BHEL has received an order from Power Engineers Contracting Company, UK for supplying 42 MW Gas Turbine generating unit for Nasiryah power project in Iraq," the company said in a statement.

BHEL has also signed a Memorandum of Understanding with Power Engineers for supplying gas turbine generators and steam turbine generators for future projects in Iraq, it said.

The gas turbines and associated equipment will be made and supplied by BHEL's Hyderabad plant and the control system will be manufactured and supplied by its electronics division, Bangalore.



ref:
http://www.business-standard.com/india/news/bhel-bags-rs-91-cr-contractuk-firm/78027/on

Tuesday, November 10, 2009

Govt may sell 8.9% stake in L&T to BHEL

The government may consider selling its 8.9% L&T stake it holds via Specified Undertaking of Unit Trust of India (SUUTI) to BHEL, reports CNBC-TV18 quoting Newswire18.
When contacted, BHEL’s Chairman this morning said that he is not aware of any such move. But sources indicated that this is part of a larger plan by the government to sell its key holdings in Axis Bank, L&T and ITC, which it holds via SUUTI in case money from auction of 3G spectrum does not come in this financial year.
The government is banking heavily on the 3G money. The budget had kept aside a target of Rs 35,000 crore from the 3G auction. In case that money does not come along, the government is preparing a fall back plan.
When sources in the finance ministry were contacted, they said that this is definitely an option that they are looking at but it is early to say if and when this will happen, because they are still hopeful of getting the money from the 3G auction. The date for the 3G auction has been set as January 14 by the DoT. There is some anxiety in North Block with regard to 3G auction, but they are still hopeful that the money will come though.


ref:
http://www.moneycontrol.com/news/business/govt-may-sell-89-stakelt-to-bhel-sources_423971.html

Friday, November 6, 2009

BHEL bets on near doubling of orders in H2

With the economy showing broad signs of a revival, equipment major BHEL is betting on a near doubling in order bookings in the second half of the current fiscal.
The State-owned firm is looking at booking orders to the tune of Rs 35,000 crore in the second half of the current fiscal, as against around Rs 20,000 crore in the first half, with core sector activity showing a clear uptrend.
“Our target for the full fiscal stays at Rs 55,000 crores (for new order bookings). While the achievement in the first six months has been slightly over Rs 20,000 crore, we are well on our way to achieve the target for the full fiscal,” a company official said.

ref:
http://www.moneycontrol.com/news/business/bhel-betsnear-doublingordersh2_423394.html

Tuesday, November 3, 2009

NTPC, Bhel shelve joint move to build less polluting plants

Differences over intellectual property rights (IPR) have caused NTPC Ltd and Bharat Heavy Electricals Ltd (Bhel) to scrap a proposed joint initiative to build power plants that use the integrated gasification combined cycle (IGCC) technology.

IGCC is a technology that turns coal into gas and removes impurities from the coal gas before it is combusted, resulting in lower emissions of sulfur dioxide, particulates and mercury.

NTPC has decided to go ahead on its own and will shortly be appointing a consultant to prepare specifications for these plants, according to an official at the state-owned utility, the country’s largest. The executive declined to be named.

Bhel, India’s largest power generation equipment maker, will collaborate with Andhra Pradesh Power Generation Corp. Ltd (APGenco) to build IGCC power plants, an official at the public sector enterprise said on condition of anonymity.



ref:

http://www.livemint.com/2009/11/03225127/NTPC-Bhel-shelve-joint-move-t.html

Saturday, October 31, 2009

BHEL bags power plant order from JPL

Bharat Heavy Electricals Limited has signed an agreement with Jindal Power Limited for setting up the 2,400 MW extension stage of OP Jindal Super Thermal Power Plant 4x600 MW in Chhattisgarh.

Valued at INR 50,400 million, the contract agreement was signed between BHEL and JPL in the presence of Mr Vilasrao Deshmukh union minister for heavy industries & public enterprises; Mr Naveen Jindal chairman of JPL, Dr Satyanarayana Dash secretary ministry of heavy industries & public enterprises and Mr BP Rao CMD of BHEL.

As per the current contract, BHEL will install four units of 600 MW each in this extension stage of OP Jindal STPP at Raigarh.

BHEL’s scope of work in the contract envisages design, engineering, manufacture, supply, erection, testing and commissioning of boilers, steam turbines, turbo generators and associated auxiliaries along with state of the art controls & instrumentation system including generator and station transformers.

For the same customer, BHEL has earlier successfully executed 4 units of 250 MW each at OP Jindal STPP at Raigarh.

ref:
http://steelguru.com/news/index/2009/10/31/MTE4MjE4/BHEL_bags_power_plant_order_from_JPL.html

Sunday, October 25, 2009

BHEL net jumps 39% on reduced raw material prices

A fall in raw material costs helped state-run power equipment maker BHEL post 39 per cent rise in its net profit at Rs 857.88 crore for
the second quarter of the current fiscal.

"There has been substantial saving on raw material cost during quarter ending September 30 which helped us recording 39 per cent jump in net profits," CMD BHEL B P Rao told reporters here.

"The raw material cost as percentage of gross turnover during the second quarter (July-September) this year is 58.3 per cent as against 62.8 per cent during the corresponding period last fiscal," Rao said.

Asked whether the company would be able maintain such saving on raw material cost in the third quarter, he said, "Definitely... there will be saving on the raw material cost in the current quarter. We are expecting to improve our margins by 200 basis points (2 per cent) in this quarter."

BHEL had an impressive orderbook of Rs 1,25,800 crore at the end of July-September quarter.

"We got orders worth Rs 950 crore. The overseas business contributes 10-12 per cent to company's revenues," he said.

ref:
http://economictimes.indiatimes.com/news/news-by-company/earnings/BHEL-net-jumps-39-on-reduced-raw-material-prices/articleshow/5154220.cms

BHEL and NTPC: Profits a study in contrast

It has been a contrast in performance when it comes to the two large state-owned companies — Bharat Heavy Electricals (BHEL) and NTPC.

While BHEL seems to have stepped on the gas with a 40% profit growth — nearly double the growth rate for the previous two quarters — NTPC’s profit growth has slumped from an average of 30% over past three quarters, to barely 2%. For BHEL, profit growth also contrasts with average growth in single digits for the previous four quarters.

Even though BHEL’s sales growth of 24% is slightly lower compared to the previous quarter, it has managed a significant improvement in its profitability. This has come about with an almost 8 percentage-point reduction in raw material/sales ratio. BHEL had been sitting on high-cost raw material inventory until Q1FY10, and has seen the benefit of commodity meltdown only in this quarter.

The company looks well-poised to maintain its momentum, with its 25-30% guidance for sales growth. BHEL will be expanding its capacity by half, by the end of this financial year, which will enable it to execute projects faster. While the company had to wait for two-to- three quarters to get the benefit of softer raw material prices, it is now pretty well-positioned on this front also.


ref:
http://economictimes.indiatimes.com/Views/Recommendations/Inputs-save-day-profits-a-study-in-contrast/articleshow/5154779.cms

Thursday, October 22, 2009

BHEL Q2 PAT seen up 22% at Rs 752.4 cr

BHEL is set to announce its second quarter results of FY10. Its PAT (profit after tax) is expected to go up 22% at Rs 752.4 crore versus Rs 615.77 crore, YoY.

Net sales are seen going up 25% at Rs 6671.05 crore from Rs 5342.63 crore. OPM (operating profit margin) is seen improving to 14.39% versus 13.3%.


ref:
http://www.moneycontrol.com/news/result-poll/bhel-q2-pat-seen22-at-rs-7524-cr_420380.html

Tuesday, October 20, 2009

BHEL pays Rs 2.65 bn dividend to government

With a final dividend payout of 80%, Bharat Heavy Electricals (BHEL) has paid an equity dividend of 170% on the enhanced equity capital post-bonus for fiscal 2008-09, as against 152.5% paid in the year before. This includes an interim dividend of 90% paid earlier. At Rs 8,320 million, this is the highest-ever dividend paid by the company so far.

With this, the company has maintained its unmatched track record of earning profits and rewarding investors by paying dividends uninterruptedly for over three decades without a break.

A cheque of Rs 2,652 million towards the final dividend for the year 2008-09 on the equity (67.72%) held by the Government of India, was presented today to Pranab Mukherjee, Hon`ble union minister for finance by Vilasrao Deshmukh, Hon`ble union minister for heavy industries and public enterprises in the presence of Arun Yadav, Hon`ble union minister of state for heavy industries and public enterprises, Satyanarayana Dash, secretary, ministry of heavy industries & public enterprises and B.P. Rao, chairman and managing director, BHEL. (Q,N,C,F)*

Shares of the company declined Rs 8.75, or 0.35%, to trade at Rs 2,492.00. The total volume of shares traded was 35,681.00 at the BSE (12.27 p.m., Tuesday).


ref:
http://www.myiris.com/newsCentre/storyShow.php?fileR=20091020123852203&dir=2009/10/20&secID=livenews

Friday, October 16, 2009

BHEL in talks with overseas players for transmission JV

State run power equipment maker BHEL said it would finalize a global technology partner for the proposed joint venture to manufacture power transmission equipment within three months.

Mr B P Rao CMD of BHEL said in his first press conference after assuming charge of the company “The power transmission equipment (manufacturing) joint venture will be in place in the next three months, we are in talks with some international players,”

He however declined to divulge the name of the international firms. Earlier, this fiscal the company had announced collaborating with a foreign company for manufacturing power transmission equipment.

The JV would focus on manufacturing 765 KV and 1,200 KV transmission equipments. BHEL which has an order book of INR 125,000 crore expects to bag new contracts worth about INR 20,000 crore during the current fiscal.

ref:
http://steelguru.com/news/index/2009/10/17/MTE2NDQy/BHEL_in_talks_with_overseas_players_for_transmission_JV.html

Thursday, October 15, 2009

India BHEL order book at 1.3 tln rupees - chairman

Bharat Heavy Electricals Ltd (BHEL.BO) has got new orders worth 200 billion rupees ($4.3 billion) since April, including from Vedanta (VED.L) and Hindalco (HALC.BO), Chairman B.P. Rao said on Thursday.

The company's order-book was at 1.3 trillion rupees, he told reporters.


ref:
http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSBMA00616120091015

Govt says no plans to divest stake in BHEL

The government today ruled out any immediate plan to disinvest its stake in power equipment maker BHEL.

"There is no question right now," Heavy Industries Minister Vilasrao Deshmukh told reporters when asked if there will be disinvestment in BHEL.

He said the government owns 67 per cent stake in BHEL and there is no proposal for further disinvestment.

ref:
http://www.business-standard.com/india/news/govt-says-no-plans-to-divest-stake-in-bhel/76052/on

Tuesday, October 13, 2009

Bhel may tie up with Indian Railways to set up coach factory

Bharat Heavy Electricals Ltd (Bhel) may form an equal joint venture with Indian Railways to set up a factory at Kanchrapara-Halisahar railway complex in West Bengal with an annual capacity of 500 coaches for electrically powered trains.

While the move will help Bhel diversify its portfolio of offerings, it will also enable the railways to achieve its objective of partnering with the corporate sector to manufacture coaches and engines.

The land for the factory is to be made available by the railways. The decision to set up the factory through the joint venture or public-private partnership mode was announced by Mamata Banerjee in her railway budget speech and will require an investment of around Rs300 crore.

more at:
http://www.livemint.com/2009/10/13210420/Bhel-may-tie-up-with-Indian-Ra.html

Saturday, October 10, 2009

Bhel to cut delivery lag, increase capacity

Bharat Heavy Electricals Ltd (Bhel), India’s biggest power-equipment maker, plans to tighten delivery schedules and increase capacity as the government gears up to reduce the nation’s electricity deficiency.

“We have to scale up nearly two-and-a-half times,” chairman and managing director B. Prasada Rao said on Friday in New Delhi. “We need to get into an orbit of delivering 15,000MW of capacity each year.”

Bhel expects a rush of orders as Indian utilities prepare to almost double the country’s generation capacity in the next seven years from the current 152,148MW. The company is spending Rs1,590 crore to expand capacity to produce equipment capable of generating 20,000MW by March 2012, according to a statement on 17 September.

Orders worth Rs20,000 crore have been received for the financial year started 1 April, taking total contracts in hand to Rs1.25 trillion, Rao said. Bhel expects to form a venture to make power transmission equipment in the next three months, he said.

Prime Minister Manmohan Singh has pledged to spend Rs56,960 crore to add power plants and transmission lines in the year to 31 March. The government plans to add 78,700MW of generation capacity in the country in the five years to March 2012 and 100,000MW in the following five years.

India, the world’s second fastest growing major economy, faces a peak-hour power shortage of 12.6% this year, according to the Central Electricity Authority.


ref:
http://www.livemint.com/2009/10/09230531/Bhel-to-cut-delivery-lag-incr.html

BHEL to revamp offshore oil rigs biz

BHEL on Friday said it will approach shipyards for providing equipment used for making oil rigs.

"We would approach some shipyards for providing equipment for manufacturing offshore oil rigs... cannot name them (shipyards) as of now," BHEL CMD, B P Rao said here.

BHEL in talks with foreign cos for transmission JV

The company had earlier decided to quit its deep water oil rig business as it was unable to find a suitable partner arising out of investment constraints.

"Currently we are in onshore oil rigs business with ONGC and Oil India... we are engaged in refurbishment of these rigs," Rao said.

BHEL in talks with Areva, Toshiba for nuclear tie-ups

BHEL has manufactured and supplied over 80 drilling and well servicing rigs to both ONGC and Oil India.

The company's primary business is manufacturing power equipment and it plans to augment its manufacturing capacity for supporting 15,000 MW electricity generation by the end of this financial year and further enhance it to 20,000 MW by 2012.


ref:
http://sify.com/finance/equity/fullstory.php?a=jkkiCLgjcec&title=BHEL_to_revamp_offshore_oil_rigs_biz&cid=20753

Wednesday, October 7, 2009

BHEL looking at Africa for first factory abroad

Bharat Heavy Electricals Ltd (BHEL) is looking at Africa for setting up its first manufacturing facility abroad. The company had earlier zeroed in on the UAE, but decided to locate the plant in Africa.

A senior company executive said the location has not been finalised but it would cater to the company’s business in Africa and the West Asia. Africa, West Asia and Central Asia are the primary foreign markets for BHEL, dominant player in the power and heavy equipment business in India. It plans to increase its export revenue to Rs 10,300 crore by 2012.

The aim behind the new facility is that it would open the entire African and the West Asian market for the company. At present, BHEL has Rs 1,000 crore worth of business in Africa alone. “If we focus, we can get better access,” said the executive. BHEL earns about 15 per cent of its revenue from abroad. It recorded a net profit of Rs 3,039 crore on a revenue of Rs 27,505 crore in 2008-09. It aims to become a $10 billion (around Rs 47,200 crore) company by 2012.

The proposed overseas plant would manufacture switchgear and transformers. “We have been holding preliminary talks with various countries in Africa,” said the executive, without divulging names. The plans are in a discussion stage and nothing has been finalised till now, said another.

At present, BHEL’s international business is supported from India, with its presence overseas being limited to regional offices in Dubai and Jakarta. Its product profile for the international market ranges from thermal, gas and hydro generation to the transmission business. Though its products and services have been exported to over 70 countries, it has not established any production base outside India.

BHEL had earlier made plans for acquisitions abroad, including that of Czech power company Skoda Power AS’ turbine manufacturing facility and units for manufacturing boilers and railway coaches, among others. But these plans could never take off and now it appears to be focusing on putting up its own facility

ref:
http://www.business-standard.com/india/news/bhel-looking-at-africa-for-first-factory-abroad/372613/

Monday, October 5, 2009

BHEL to declare Q2 results on Oct 23, 2009

Bharat Heavy Electricals Ltd (BHEL) has announced that a meeting of the Board of Directors of the Company will be held on October 23, 2009, inter alia, to consider and take on record the Unaudited Financial Results of the Company for the Quarter ended September 30, 2009 (Q2).

The stock closed the day at Rs.2339.20, down by Rs.10.75 or 0.46%. The stock hit an intraday high of Rs.2389 and low of Rs.2311.

The total traded quantity was 119157 compared to 2 week average of 85344.


ref:
http://www.equitybulls.com/admin/news2006/news_det.asp?id=61108#

Saturday, October 3, 2009

Bhel appoints Atul Saraya as Director (Power)

Bhel today said it has appointed Atul Saraya as Director (Power) in the company.

Prior to this, he was heading the company’s power sector marketing function as well as Bhel’s power sector eastern region construction division as Executive Director, the company said in a release.

Saraya joined Bhel as an engineer trainee in 1976 and has 33 years of diversified and versatile professional experience of working in various functions of the company, the release added.

ref:
http://www.business-standard.com/india/news/bhel-appoints-atul-saraya-as-director-power/74897/on

B P Rao takes over as BHEL CMD

B P Rao takes over as BHEL CMD

ref:
http://www.business-standard.com/india/news/rao-takes-over-as-bhel-cmd/74774/on

I worked with him at Electronics Division, Bangalore ..... but I am not sure if he remembers me!

Anyway, I wish him all the best

Ramesh

Friday, September 25, 2009

BHEL hopes to get orders worth Rs 55,000 cr this fiscal

Bharat Heavy Electricals Ltd (BHEL), the country’s largest power equipment manufacturer, is hopeful of getting orders worth Rs 55,000 crore within the financial year ending March 2010.

“Out of this Rs 55,000 crore, we have booked orders worth Rs 19,000 crore in the two quarters of this financial year. Our outstanding order book is at over Rs 1,30,000 crore,” BHEL Chairman and Managing Director K Ravi Kumar said.

He also added that the company expects another Rs 10,000 crore worth of orders by next month.

“We have finalised the prices for further orders worth Rs 10,000 crore. We are expecting the advance by October. This is mainly from private players and one order from NTPC,” he said, adding that 80 per cent of the orders bagged by the company so far in the current financial year have been placed by private companies.

Kumar also assured that all the power units to be set up for the Commonwealth Games 2010 to be held in Delhi will be supplied and commissioned by BHEL on time. BHEL’s share closed at Rs 2,245.60, down 0.18 per cent by close of Friday’s trade on the BSE

ref:
http://www.business-standard.com/india/news/bhel-hopes-to-get-orders-worth-rs-55000-cr-this-fiscal/371340/

Thursday, September 24, 2009

BHEL bags Rs 3.65 bn order for 700 MW N-power project

Bharat Heavy Electricals has bagged a Rs 3.65 billion order from the Nuclear Power Corporation of India for supply of four steam generators for India`s second 700 MWe nuclear power station, being set up at Rajasthan Atomic Power Project, Kota, reports Economic Times.

BHEL had bagged a similar order from NPCIL for the country`s first 700 MWe nuclear power station, being set up at Kakrapar Atomic Power Project in Gujarat.

The company will design, manufacture and supply these steam generators. The product will be manufactured and tested according to American Society of Mechanical Engineers (ASME Sec.III) Standards and is expected to meet various operation requirements as per customers` specifications.

BHEL has so far supplied 32 nuclear steam generators for eight 220 MWe nuclear power stations at Narora (UP), Kaiga (Karnataka) and RAPP (Rajasthan).

Shares of the company closed down Rs 22.3, or 0.98%, at Rs 2,249.75. The total volume of shares traded at the BSE was 91,584 (Thursday).

ref:
http://www.myiris.com/newsCentre/storyShow.php?fileR=20090925080152203&dir=2009/09/25&secID=livenews

Thursday, September 17, 2009

BHEL shareholders okay to appoint 5 directors

Bharat Heavy Electricals Ltd on Thursday said that shareholders of the company have given their approval for appointing five directors on its board.

BHEL in a statement said that shareholders of the company have approved the appointment of Mr Ashok Kumar Basu, Mr MA Pathan, Ms Reva Nayyar, Mr Rajiv Bansal and Mr Saurabh Chandra as directors.


ref:
http://steelguru.com/news/index/2009/09/18/MTEyMjM5/BHEL_shareholders_okay_to_appoint_5_directors.html

India, Belarus sign 3 pacts - BHEl gets USD 50 million Order

Moscow, Sept 17 (PTI) India and Belarus today signed three agreements, including a USD 50 million commercial contract for a power plant in the former Soviet republic, as External Affairs Minister S M Krishna wrapped up his two-day maiden visit to the country.

Indian Ambassador Ramesh Chander signed an agreement on Cooperation in Physical Training and Sports in the presence of Krishna and his Belarus counterpart Sergei Martynov in Belarus capital Minsk.

In a major breakthrough in the former Soviet space, Bharat Heavy Electricals Limited (BHEL) signed a contract worth USD 50 million for supply of equipment and provision of technical supervision for installation of 120 MW Grodno-II Combined Heat and Power Plant.

Under the third agreement, India will set up a Digital Learning Centre at the High Technology Park in Belarus.

Before leaving Minsk, Krishna also called on President Aleksandr Lukashenka.

ref:
http://www.ptinews.com/news/287928_India--Belarus-sign-3-pacts--Krishna-concludes-visit

BHEL reports record net profit of Rs3,138 crore for fiscal 2008-09 news

Bharat Heavy Electricals Limited (BHEL) recorded its highest-ever net profit (profit after tax) of Rs3,138 crore in fiscal 2008-09, up 10 per cent from the previous fiscal, as the company built on the growth momentum achieved in the year before with a 31 per cent growth in turnover at Rs28,033 crore.

The record growth in sales and profitability was achieved despite unprecedented increase in raw material costs, chairman and managing director K Ravi Kumar told shareholders at the 45th annual general meeting of BHEL.

This has been achieved due to a recorded a surge in economic value addition at BHEL, which went up to Rs2,008 crore from Rs1810 crore in the year before, he said.

The company also paid the highest-ever total dividend of Rs832 crore for 2008-09 - which is 170 per cent of the paid-up capital (including an interim dividend of 90 per cent) as against 152.5 per cent paid for 2007-08.

The company also surpassed its own record set in 2007-08 by securing orders worth Rs59,678 crore, the highest-ever in a single year, despite operating under intense competitive pressure in domestic and international markets.

Utility orders amounted to 17,020 MW and industry sector order inflows crossed the Rs10,000-crore mark for the first time.

ref:
http://www.domain-b.com/companies/companies_b/Bharat_Heavy_Electricals/20090917_bhel.html

Tuesday, September 15, 2009

BHEL holds vendor's meet

MM-EM Department of BHEL organised a vendor meet for the vendors of electrical machine. SR Prasad, GM, EM was the chief guest in this programme.
In his address, Prasad said that in achieving the target of Bhopal Unit, the role of vendors and customers are equally important. In the present global scenario, Product Quality, Timely Delivery and Reduction in Cost are most important factors to sustain in the market and to fulfil these conditions the role of vendor is like a business partner.
While appreciating the role of vendors, Prasad said that the contribution of vendors in the growth of BHEL has been appreciating and BHEL expects the same contribution in future also.
SK Bhatia, AGM, (MM-EM) and SP Kapoor, Sr DGM, (MM-EM) conducted the programme. The vote of thanks was proposed by Amitabh Dubey, Sr DGM (MM-EM).

ref:
http://www.centralchronicle.com/viewnews.asp?articleID=14696

Monday, September 14, 2009

BHEL staff on strike for wage revision

About 11,000 employees of Bharat Heavy Vehicle Ltd (BHEL), led by the Labour Progressive Front (LPF), struck work on Monday demanding wage revision negotiations and pension benefits.


According to sources, various unions of BHEL employees of Tiruchy, Ranipet, Bangalore and Hyderabad units had planned to go on strike on Monday pressing their charter of demands.

The demands included wage revision from January 2007, reduction of wage revision duration from 10 years to five years, fixing pay scales for contract employees and pension benefits.

In the Tiruchy unit 15 unions, including LPF, Indian National Tradu Union Congress (INTUC), Centre of Indian Trade Union (CITU), Dr Ambedkar Labour Union, All Indian Anna Dravida Munnetra Kazhagam (AIADMK), Marumalarchi Dravida Munnetra Kazhagam (MDMK) and Desiya Murpokku Dravida Kazhagam (DMDK) unions, organised the strike.

Tense moments prevailed when LPF president Ethiraj and other leaders stopped the employees at the BHEL gate when they tried to report for work.

“The administration has invited us for talks on September 18. We hope our demands would be conceded,” Ethiraj said.

A heavy posse of police was deputed at the spot to avoid any untoward incident. Attempts by Superintendent of Police A Kaliyamoorthy and others to intervene led to tension.

ref:
http://www.expressbuzz.com/edition/story.aspx?Title=BHEL+staff+on+strike+for+wage+revision&artid=iJ%7CWgnGPMk8=&SectionID=vBlkz7JCFvA=&MainSectionID=fyV9T2jIa4A=&SectionName=EL7znOtxBM3qzgMyXZKtxw==&SEO=

Thursday, September 10, 2009

BHEL bags record order of Rs 10,254 crore in 2008-09

Bharat Heavy Electrical Ltd. (BHEL)'s industry sector business segment recorded an all time high order of Rs 10,254 crore in fiscal
2008-09, in captive power, transportation, power transmission, oil and gas and other industrial segments, a top company official said.

Flagging off the first consignment of foundation materials to Mahan Aluminium in Singrauli district of Madhya Pradesh, A V Krishnan, Executive Director, BHEL, here today said the dispatch was made ahead of the schedule and against an order for supply of main plant package of six 150 MW units, being set up by HINDALCO Industries Ltd.

Last year, BHEL bagged the largest captive power plant order in two parts - from HINDALCO for setting up 12 sets of 150 MW units at Mahan Aluminium and Aditya Aluminium at Sambalpur district of Orissa, valued at Rs 4,015 crore.

BHEL has been executing these orders against a tight schedule of 24 months and is expected to complete the order in Mahan Aluminium by March 2011 and in Aditya Aluminium by June 2011, Krishnan added.

Friday, September 4, 2009

Karvy initiates coverage on BHEL with target of Rs 2653

Karvy Stock Broking has initiated coverage on BHEL and expects the stock to hit a target of Rs 2653 in next 12-months.


“BHEL is a leading power equipment manufacturer in India and a play on India's increasing power generation requirement. The capacity addition of 10,000 MW (100% of existing) by FY12 is expected to improve execution capability and drive the revenue at a CAGR of 22.3%. The net profits are expected to boost up from 540
bps margin improvement mainly on account of cost control and are expected to increase at a CAGR of 30% to Rs 68.99 bn by FY12.

At the current price of Rs 2,201, the stock is trading at 25.6x FY10E and 19.1x FY11E earnings and EV/EBIDTA it is trading at 15.7x FY10E and 11.3x FY11E. The valuations look attractive given the leadership position and future growth opportunities for the company along with RoCE and RoE of around 37% and 28% respectively. We have used average of P/E and DCF method to value BHEL.

We have valued the BHEL at 25xFY11E earnings translating into PEG of 0.8. Our P/E based valuation per share of Rs 2763 and DCF value per share of Rs 2543 gives the target price of Rs 2653 per share. We rate the stock an Outperformer,” the brokerage report said.

ref:
http://economictimes.indiatimes.com/Views/Recommendations/Karvy-initiates-coverage-on-BHEL-with-target-of-Rs-2653/articleshow/4970787.cms

INTERVIEW - BHEL eyes $2.5 bln orders in 4-6 wks

Bharat Heavy Electricals Ltd, India's largest power equipment maker, expects to close orders worth about $2.5 billion in the next 4-6 weeks as firms

step up investment in the power sector, its chairman said.

"We have already negotiated prices, we are only waiting for their financial closure," K. Ravikumar told Reuters in a telephone interview.

The state-run company, which the market values at nearly $22 billion, is counting on private power firms to boost its order book as delays in bids and rising competition slow orders from the government, he said.

BHEL has orders on hand worth 1.3 trillion rupees ($26.6 billion). This includes 150 billion rupees signed this year, with the private sector contributing 90 percent.


more at:
http://in.reuters.com/article/businessNews/idINIndia-42213920090904

Wednesday, September 2, 2009

BHEL to set up solar PV facility

Bharat Heavy Electricals Limited (BHEL), the state-owned power equipment major, is planning to invest close to Rs 2,000 crore to set up a 250 Mw solar photovoltaic production facility for processing silicon wafers, solar cells and PV modules. The facility will be set up in a joint venture with Bharat Electronics Limited (BEL), K Ravi Kumar, chairman and managing director, BHEL said.

Talking to reporters after inaugurating the 8 Mw solar PV module manufacturing facility at BHEL Bangalore Complex, here today, he said both the companies are currently in the process of roping in a overseas company for technology transfer for the venture. The deal is likely to be finalised by end of March 2010, he said.

“It is a backward integration for us as we already manufacture solar PV modules in our Bangalore complex. Out of 250 Mw new capacity, some portion will be exported. We must have a power plant for setting up this facility. It is a power intensive and needs at least 400 Mw of power. The location will be finalised by end of the year,” he said.

Currently, BHEL is making silicon modules from wafers. This will be the first such major facility for manufacturing raw material for solar panels by BHEL and BEL together. Polysilicon is a key component for integrated circuit and central processing unit manufacturers such as AMD and Intel.

He said the proposed polysilicon material manufacturing facility will be an integrated unit that will produce polysilicon ingots, wafers, solar cells, modules and solar panel systems.

The company will mainly sell the solar systems to government agencies that are engaged in the popularisation of solar energy beside exports. Currently, BEL is exporting solar cells to Germany, France, Italy among others. While there is a demand for 100,000 solar cells per month, BEL is exporting 50,000 solar cells every month.

BHEL is a leading player in the field of solar power plants in the country. The modules are manufactured in Bangalore.

It also exports to various countries such as Germany, Australia and Italy.

ref:
http://www.business-standard.com/india/news/bhel-to-setsolar-pv-facility/368871/

Tuesday, September 1, 2009

Top state-run firms to get Maha Ratna status

The government proposes to award Maha Ratna status to state-owned companies for greater functional autonomy to make higher investments,
form joint ventures and expand capacity, Heavy Industries and Public Enterprises Minister Vilasrao Deshmukh said here Tuesday.

"My ministry will seek cabinet approval for elevating some of the Nav Ratna companies owned by the government to the Maha Ratna status provided their net profit is Rs.5,000 crore for three consecutive years," Deshumukh told reporters on the margins of an official function.

Profit-making firms such as Bharat Heavy Electricals Ltd (BHEL), National Thermal Power Corporation (NTPC) and Oil & Natural Gas Commission (ONGC) qualify for the Maha Ratna status.

"We are working on the details of the new scheme in consultation with other ministries like finance and law. Once the cabinet approves the scheme, a committee will be set up to identify, vet and select the Nav Ratnas that can be elevated to Maha Ratna status," Deshmukh said after dedicating to the nation BHEL's solar photovoltaic production facility on the outskirts of the city.

With state-run oil firms coming under the petroleum ministry, the new status will not be decided by the heavy industries ministry.

Clarifying that the proposed new status would not stall disinvesting the government stake in profit-making firms, Deshmukh said barring the listed state-run firms, other state-owned firms were not in the disinvestment programme.

"At any cost, disinvestment will be up to 49 percent so as to ensure the government's majority holding will remain intact at 51 percent. There is no proposal before the ministry for disinvesting any stake in BHEL," Deshmukh asserted.

ref:
http://economictimes.indiatimes.com/News/Economy/Policy/Top-state-run-firms-to-get-Maha-Ratna-status/articleshow/4960770.cms

Sunday, August 30, 2009

Centre allots Rs 6,000 cr NTPC-BHEL unit to AP

Ending months of suspense, the Government of India has finally allotted the Rs 6,000 crore power projects equipment manufacturing unit
of the NTPC-BHEL to Andhra Pradesh.

Prime Minister Manmohan Singh will lay the oundation-stone for this project at Mannavaram near temple town of Srikalahasthi in Chittoor district on September 6, according to Andhra Pradesh Chief Minister Y S Rajasekhara Reddy.

The Chief Minister called the Prime Minister over phone today, after AP was chosen for setting up the project, and thanked him for this.

Public sector giants National Thermal Power Corporation (NTPC) and Bharat Heavy Electricals Limited (BHEL) have joined hands to set up the major power projects equipment manufacturing unit.

NTPC-BHEL Power Projects Pvt Ltd, the joint venture company, incorporated last year by NTPC and BHEL, will set up the green field unit that will manufacture equipment for thermal, hydro, gas and power plants.

The State government has allotted 750 acres of land for the unit at a nominal price of Rs 100 per acre. The plant would provide direct employment to 6,000 people besides indirect employment to over 25,000 persons, according to the Chief Ministers Office.

ref:
http://economictimes.indiatimes.com/News/News-By-Industry/Energy/Power/Centre-allots-Rs-6000-cr-NTPC-BHEL-unit-to-AP/articleshow/4949306.cms

Friday, August 28, 2009

BHEL bags Rs 190 cr order from Oil India

BHEL has won a Rs 190-crore turnkey contract from Oil India for setting up a gas-based captive power plant in Assam," a company statement said.

BHEL's scope of work in the project includes designing, engineering, manufacturing, suppling, erection and commissioning of the complete captive power plant.

The equipment for the project will be supplied by BHEL's plants at Hyderabad, Bhopal, Jhansi and Bangalore.

BHEL has earlier supplied several onshore oil rigs as well as equipment used in oil exploration.

ref:
http://www.business-standard.com/india/news/bhel-bags-rs-190-cr-orderoil-india/71892/on

Wednesday, August 26, 2009

BHEL comes to Bawana plant’s rescue

Stepping in to save the 1,500 MW gas-based Bawana power plant from missing the date of commissioning, Union Heavy Industries and Public Enterprises Minister Vilasrao Deshmukh has directed Bharat Heavy Electricals Limited (BHEL) to ensure proper arrangements for providing equipments, manpower and other material required for the plant.

The 1,500 MW plant whose foundation stone was laid by Prime Minister Manmohan Singh in March 2008 and is being set up by BHEL is crucial for the Commonwealth Games being held in the Capital in October 2010.

Following a meeting on Wednesday with Delhi Chief Minister Sheila Dikshit who apprised him of the constraints being faced in completion of the works, Mr. Deshmukh said there was a need for monitoring the project on a daily basis.

The Minister also directed BHEL chairman and managing director N. Ravi Kumar to address the problems being faced by Delhi Transco and the other agencies in completion of the plant. He also directed BHEL to post a general manager to ensure overall progress of this project and submit a detailed report on daily basis.

Faced with a possibility of a delay in the commissioning of the plant in time for the Commonwealth Games, Ms. Dikshit had sought the intervention of the Union Minister.

“Mr. Deshmukh assured that all possible help would be provided by his Ministry. He directed BHEL chairman and managing director to sort out all problems related to the Bawana power plant. The Government cannot afford any delays in its commissioning since the plant will provide the required power during the Commonwealth Games,” said a Power Department official.

ref:
http://beta.thehindu.com/news/cities/Delhi/article9694.ece

BHEL comes to Bawana plant’s rescue

BHEL comes to Bawana plant’s rescue

Wednesday, August 19, 2009

Bhel’s new unit in UP inaugurated

To meet the country’s increasing electricity demands and to fulfill the Centre’s ambitious capacity expansion plans in the power sector, public sector Navratna company, Bharat Heavy Electricals Limited (Bhel) on Monday, inaugurated its new Rs 367 crore centralised stamping unit (CSU) at Jagdishpur, in Uttar Pradesh.

The plant, along with the new fabrication plant at the same location, will cater to the company’s mother plants at Bhopal, Haridwar and Hyderabad.

Speaking on the occasion, the CMD of Bhel, K Ravi Kumar said with the Centre’s plan to provide power for all by 2012, Bhel has also enhanced its manufacturing capacity expansion from 15,000 mw to 20,000 mw by the end of the XII Plan.

“This new unit is a milestone for meeting the challenges of the power sector and it will now feed the company’s three mother plants that are already making boilers, turbines and generators for the many upcoming power plants that are coming up in the country. Our target is to make the company a Rs 45,000 crore company by the end of 2012,” said Kumar.


more at :
http://www.financialexpress.com/news/bhels-new-unit-in-up-inaugurated/503128/

Sunday, August 16, 2009

BHEL Trichy eyes Rs 10,000 cr turnover

The Tiruchirappalli complex of Bharat Heavy Electricals Limited (BHEL) has set a target of Rs 10,000 crore turnover by the end of the current fiscal, said A V Krishnan, executive director, BHEL - Tiruchirappalli.

He said the Phase III of capacity augmentation of the boiler plant being taken up with an additional investment of Rs 485 crore would be completed by 2011. Upon completion, the manufacturing capacity of the plant will increase to 15,000 Mw per annum.

The unit was also focusing on despatching all materials in a sequential manner to enable erection and commissioning of all its projects well in time. He said that the thrust would be on three major parameters — productivity, quality and safety — towards meeting the requirements of customers.

Unit-II of the high pressure boiler plant, set up near the existing factory under Phase-II of the capacity augmentation scheme at an outlay of Rs 732 crore, would soon be inaugurated, Krishnan said adding in the third phase, around 89 major manufacturing facilities would be added at the new plant


ref:
http://www.business-standard.com/india/news/bhel-trichy-eyes-rs-10000-cr-turnover/367165/

Saturday, August 15, 2009

Ravi Kumar to step down as Bhel CMD on Sept 30: Sources

BHEL CMD Ravi Kumar is likely to step down on September 30, reports CNBC-TV18, quoting sources. Kumar is likely to join the private sector post retirement. The likely frontrunners for the BHEL CMD post are CS Verma, Prasada Rao, Anil Sachdev, and OP Bhutani. Verma is currently Director-Finance at BHEL, Rao is Director-Industrial Systems, Sachdev is Director-HR, while Bhutani is Executive Director-International Operations.

Atul Saraya may take over from Ravi Kumar as Director-Power Projects from October 1. He is currently Executive Director-Marketing at BHEL.
ref:
http://www.moneycontrol.com/india/news/business/ravi-kumar-to-step-down-as-bhel-cmdsept-30-sources/410924

Thursday, August 13, 2009

India's BHEL, state firm plan new power plant

Bharat Heavy Electricals Ltd (BHEL.BO) has signed a memorandum of understanding to form a joint venture with Maharashtra State Power Generation Co to build a 1,320 megawatt thermal power plant, the utility said in a statement on Thursday.

The MoU has a provision that the parties may instead opt for a gas-based 1,500 MW power plant if coal is not available but gas is.

Bharat Heavy's chairman and managing director, K. Ravi Kumar, said the coal-based project would cost about 58 million rupees ($1.2 million) per MW, excluding the cost of mining, while it would cost 42 million rupees ($0.9 million) per MW in the case of a gas-based plant.

"We are applying for a coal mine," Ravi Kumar told reporters adding the venture was looking in Chattisgarh or Mahanadi.

The company would need 5 million tonnes per annum of coal or 6 million metric standard cubic metres a day of gas, he said.

Ravi Kumar said it has applied to Gail (GAIL.BO) to assess the technical feasibility of receiving gas from the Krishna Godavari basin.

The two parties would initially have equal stakes in the joint venture and would later reduce their stakes to 26 percent each with the rest to be sold to financial institutions, banks and other partners.

He said a lot of people were interested, including State Bank of India (SBI.BO), Infrastructure Development Finance Co (IDFC.BO) and IFCI (IFCI.BO). ($1=48.36 rupees) (Reporting by Ami Shah; Editing by Greg Mahlich)

ref:
http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSBOM51943020090812

Tuesday, August 11, 2009

BHEL celebrates HRD Day

HRD Day was celebrated with great zeal and enthusiasm in BHEL-Bhopal today. MK Dube, Executive Director, presided over a special meet of HRD Council on this occasion. The meeting was attended by General Managers, Direct Reporting Officers and HODs. Dr DP Sharma, ex-Vice Chancellor-Barkatullah University was especially invited as guest speaker on the occasion.
On this occasion Dr Sharma said that in the present scenario of rapid change in every field, the role of HRD is crucial to develop the skill of employees to cope up with the requirement. He briefed about the role of HRD in this regard.
While releasing the HRD Calendar 2009-10 Dube offered his best wishes to all on HRD Day. On this occasion he highlighted need for management of change in the rapidly changing scenario. He stressed on the fact that employee has to be competent enough to deliver expected performance in face of change and training makes a significant difference to develop this competence.
Keeping in mind the skills required in the future, HRD has to develop its programme accordingly.
RK Girdonia, AGM (HR) in his welcome address highlighted the ever-increasing scope and purpose of HRD interventions especially with significant level of induction going on at present appreciated the developmental efforts going on in BHEL. He requested the august audience to keep in view that training employee ensures future growth for company.
A brief presentation on "Business Excellence through HRD" was made before the APEX body for valuable suggestions to improve upon the existing HRD processes by MS Jayati Dey.
PK Goyal, AGM, (HRD) conducted the programme and vote of thanks was proposed by Harsh Puri, AGM (HRD).

ref:
http://www.centralchronicle.com/viewnews.asp?articleID=12088

Thursday, August 6, 2009

BHEL bags Rs. 2,600 crore order in Orissa

Bharat Heavy Electricals Ltd. (BHEL) has bagged a Rs. 2,600-crore order from Hindal India Thermal Power Ltd. for its 1,200 MW (2 x 600 MW) greenfield power project located at Derang in the Angul district of Orissa. BHEL has fully established the state-of-the-art technology for the manufacture of thermal sets up to 1,000 MW rating, according to a company statement. — Special Correspondent

ref:
http://www.hindu.com/2009/08/06/stories/2009080652171700.htm

BHEL gets $545 mln power plant Order

India's Bharat Heavy Electricals (BHEL.BO) said on Wednesday it had got an order worth 26 billion rupees ($545 million) to supply equipment for an upcoming thermal power plant in the eastern state of Orissa.

BHEL said in a statement it got the order from Jindal India Thermal Power Limited, which is building the power plant. ($1=47.7 rupees) (Reporting by Devidutta Tripathy; Editing by Himani Sarkar)

Sunday, July 26, 2009

BHEL rules out FPO, govt may divest stake by open market sale

BHEL has ruled out any possibility of Follow-on Public Offer (FPO) and said the government may divest 10 per cent stake in the company through open market transaction.

However, the company did not specify whether it would be done through bringing in a strategic partner or through open offer in the market for divesting government’s 10 per cent stake that can fetch the government about Rs 11,000 crore at the current market value.

"We don't need to file Draft Red Herring Prospectus to market regulator SEBI, because we are not increasing the size of our paid up capital. The government would offload its stake from 67.72 per cent to 57.72 per cent," BHEL CMD K Ravi Kumar said in an interaction with reporters.

Asked about the time frame to divest government share, Mr. Kumar said, "I don’t think that it would be done the in the first tranche, which includes NHPC, OIL and NMDC. It would be done possibly in the second tranche in the next financial year."

"This is my understanding that the government would not divest its stake in BHEL this fiscal. But it is purely their prerogative. However, even if the government decides to do it now, it would take four to six months to convince the trade unions," he added.

ref:
http://www.hindu.com/thehindu/holnus/006200907261652.htm

Friday, July 24, 2009

BHEL loses Rs 36K cr worth deals to Chinese competitors

Bharat Heavy Electricals Limited (BHEL) has lost Rs 36,000 crore woth of business to its Chinese counterparts in the last fiscal. Taking advantage of India’s open approach to foreign players, Chinese power equipment suppliers made full use of their higher range of products, grabbing a whopping 18,000 MW in private deals over the Indian firm.

“We have lost nearly 18,000 MW of private deals to Chinese suppliers. This is valued at approximately Rs 2 crore per MW crore,” BHEL chairman and managing director Ravi Kumar told The Indian Express.

During the months leading up to and including the 2008-2009 fiscal, Chinese suppliers were given enough space to install thermal power generators which maxed out at 300-600 MW, compared with the 250-500 MW range that Indian companies were limited to.

Allowing this to happen was India’s open approach to foreign players. This, coupled with the stronger Chinese yuan, allowed foreign suppliers to pinch a large portion of the market, usually dominated by BHEL, Kumar said and pointed out that the Central Electricity Authority has since levelled the playing field by allowing generators of all four ratings, thus resulting in BHEL earning 95 to 100 per cent of its projects from private vendors.

ref:
http://www.indianexpress.com/news/BHEL-loses-Rs-36K-cr-worth-deals-to-Chinese-competitors/493834

Thursday, July 23, 2009

BHEL order book to touch Rs 55k crore

Bharat Heavy Electricals (Bhel) has posted a jump of over 22% in its net profit this year. BHEL chairman and MD K K Ravi Kumar, Chairman and Managing Director, BHEL
Ravi Kumar says the company is now looking forward to announce its biggest order ever for six major power plants with a capacity to generate 600 mw each. Mr Kumar shares the company’s growth plans.

Your net profit has been below market expectations. What caused such subdued numbers?
There is an inventory of about nine months. So, whatever raw materials we have purchased up to August, 2008, we are using up to May 2009. So, even though there is sales growth, but there is not much value addition. During this year, we’ll do a 20-25% sales growth and a 25-30% profit growth. I am quite confident of exceeding our sales target this year and our profits will rise more than 30%.

How does the order book look like? Has there been a slowdown in the order inflow at all?
In fact, it has increased. Our guidance initially for the year was Rs 50,000 crore. But now, it must be more than Rs 50,000 crore. It may be coming to Rs 55,000 crore during the financial year.

So you’re increasing your guidance there, but can you give us a break up from where the orders are coming?
This year, in our first quarter, we’ve booked orders from the private sector. 100% orders have been booked from the private sector. I think, the government orders will come in the second quarter and we are quite confident of reaching Rs 55,000-crore order booking in the financial year.

more at:
http://economictimes.indiatimes.com/Interviews/BHEL-order-book-to-touch-Rs-55k-crore/articleshow/4809754.cms

Wednesday, July 22, 2009

BHEL Q1 PAT seen up 42% at Rs 545.93 cr

Its net sales were seen up 24% at Rs 5367.05 crore versus Rs 4329.24 crore.

The company’s EBIDTA is seen up at Rs 627.98 crore versus Rs 373.71 crore.

Its OPM is seen at 11.55% versus 8.6$.

Strong revenue growth backed by higher delivery & robust order backlog of Rs 117500 cr

Q1 order inflows declined 50% at Rs 6800 cr YoY howeverorders from private sector has been strong

Order momentum expected to intensify over next 2 qtrs led by 12th plan ordering

Operating margins are likely to be better as staff provisioning related to sixth pay commission is over and higher capacity utilisation will lower overheads.

The corresponding quarter last year had a provision of Rs116cr for wage hike provisions.

Margin expansion is also likely to be driven by the positive impact of benign commodity prices.

Capacity additions to be watched out for

BHEL capacity to go up from 10GW to 15GW by Q3FY09-entire new capacity in thermal plants

ref:
http://www.moneycontrol.com/india/news/results/bhel-q1-pat-seen-42at-rs-545-93-cr/19/45/407

Monday, July 20, 2009

BHEL got orders of USD 2.1 billion in June - Mr Kumar

Reuters cited Mr K Ravi Kumar chairman of BHEL as saying that India's leading power equipment maker, Bharat Heavy Electricals got fresh orders worth INR 100 billion during April to June.

Mr Kumar said "This time all orders are from private sector. This is a good sign. Private sector is coming up in a big way.”

Saturday, July 18, 2009

BHEL cash-surplus, govt may bring in FPO next fiscal: CMD

BHEL on Thursday said its cash position is comfortable, but if the government wants to divest further equity through a follow-on public offer it could be done next fiscal.

"We are a cash-surplus company, but if the government wants to bring out an FPO (follow-on public offer), they can, but I think only in the next financial year," BHEL Chairman and Managing Director K Ravi Kumar told reporters.

He said the company has received orders worth Rs 10,000 crore during the April-June quarter, he said.

ref:
http://economictimes.indiatimes.com/News-by-Industry/BHEL-cash-surplus-govt-may-bring-in-FPO-next-fiscal-CMD/articleshow/4784140.cms

Tuesday, July 14, 2009

BHEL bags order worth Rs 640 cr

Bharat Heavy Electricals Ltd today said it has bagged an order worth Rs 640 crore from Adhunik Power and Natural Resources Limited for setting up a thermal power unit in Jharkhand.

The power project is valued at Rs 640 crore and involves construction of a 270 MW power unit in Jamshedpur district of Jharkhand, BHEL said in a filing to the Bombay Stock Exchange.

The scope of work involves designing, engineering, manufacturing, supplying, erection and commissioning of steam turbine, generator and boiler, the filing added.

ref:
http://www.business-standard.com/india/news/bhel-bags-order-worth-rs-640-cr/67607/on

Saturday, July 11, 2009

BHEL plans JVs in nuclear, loco sectors

Bharat Heavy Electricals Ltd (BHEL) plans five joint ventures (JVs) in the nuclear sector and locomotive manufacturing. The company has decided to invest Rs 1,000 crore in a castings and forgings joint venture, Chairman and Managing Director K Ravi Kumar said.

BHEL has initiated talks with global giants in nuclear energy such as Areva of France, Toshiba of Japan, Westinghouse of the US and GE Hitachi for building reactors. For its forgings and castings JV, the public sector major is in discussions with Areva and Bharat Forge. The company had roped in UK’s Sheffield Forgemasters as technical partner in the venture, Ravi Kumar told Business Standard

source:
http://www.business-standard.com/india/news/bhel-plans-jvs-in-nuclear-loco-sectors/363567/

Friday, July 10, 2009

BHEL mulls Rs 500-cr expansion, modernisation prog

Bharat Heavy Electrical Ltd has planned a Rs 500-crore Phase III expansion and modernisation programme of the Trichirappaly unit.

Talking to reporters yesterday, BHEL Trichirappaly Executive Director A V Krishnan said, the governing board of the public sector unit had approved a proposal for the expansion programme.

This would include setting up seven additional bases of 7,200 square metres each, and ultra-modern testing equipment before the end of 2011.

He said Rs 1200 crore was spent on expansion and modernisation in phase-I and phase-II.

The installed capacity of BHEL stood at 10,000 MW in 2007-08 after the phase-1 expansion and it would reach 15,000 MW after the phase-II programme, which was expected to be completed by September this year.

source:
http://www.business-standard.com/india/news/bhel-mulls-rs-500-cr-expansion-modernisation-prog/67238/on

Saturday, July 4, 2009

No formal proposal on BHEL divestment yet; will talk to Board

The government has said there is no concrete proposal yet to divest equity in blue-chip BHEL, with Heavy Industry Minister Vilasrao Deshmukh saying that company's Board would be consulted on it.

"The issue has to be decided by the Disinvestment Department in the Finance Ministry. Neither have they raised the issue with us, nor have we talked to them," Deshmukh told PTI when asked when his ministry would go ahead with the proposed disinvestment of up to 10 per cent in the company, in which the government now has a 67 per cent stake.

Asked if the government could consider issuing fresh equity instead of selling its existing holding, he said this is an issue on which the BHEL Board would also be taken into confidence.

"Once we have something from the Finance Ministry, then we will refer this to BHEL Board for its view. We will consider whatever they have to say," he said.

On if he would support the decision by BHEL Board on the mode of disinvestment, if any, Deshmukh said: "Definitely" and added that the views would be taken seriously.

Deshmukh said that he would stand by the commitment for disinvestment in BHEL by the previous government, as the same could not be executed due to political consideration.

Now as and when the disinvestment of BHEL proposal comes up, the Ministry would take it forward, he said, adding that disinvestment would be limited to offloading minority stake in strong and highly profitable PSUs.

more at:
http://www.business-standard.com/india/news/no-formal-proposalbhel-divestment-yet-will-talk-to-board/66347/on

Monday, June 29, 2009

Search: Keyword Price BS Headlines Author BS Entire Site Web

BHEL today said it has bagged a Rs 170-crore order from Chennai Petroleum Corporation for setting up gas turbine-based co-generation power plant at its
BHEL has secured a Rs 170-crore contract from Chennai Petroleum Corporation (CPCL) for setting up an energy efficient 20 Mw co-generation power plant at its Manali refinery, a company statement said.

A co-generation power plant provides heating water and power for an industrial site or an entire town.

The project is being set up to meet the additional power and steam requirements of the refinery as part of its endeavour to achieve compliance to Euro-IV emission norms.

BHEL's scope of work in the present project envisages design, engineering, manufacture, supply, erection and commissioning of gas turbine generator and heat recovery steam generator with associated auxiliaries and balance of plant, the statement said.

The equipment for the project will be supplied by BHEL's plants at Hyderabad, Trichy, Ranipet, Bhopal, Bangalore and Jhansi. Erection and commissioning of the captive power plant will be carried out by the company's Power Sector – Southern Region, Chennai, it added.

ref:
http://www.business-standard.com/india/news/bhel-bags-rs-170-cr-orderchennai-petroleum-corp/65882/on

Monday, June 22, 2009

BHEL surges on bagging order worth Rs 105 cr

BHEL touched an intraday high of Rs 2,140 and an intraday low of Rs 2,101. At 11:56 am, the share was quoting at Rs 2,121.10, up Rs 30.60, or 1.46%.

The company has got order worth Rs 105 crore from IOC, quoting NW18, reports CNBC-TV18.

It was trading with volumes of 62,457 shares. On Friday the share closed up 2.83% or Rs 57.55 at Rs 2,090.50.

ref:
http://www.moneycontrol.com/india/news/buzzing-stocks/bhel-surgesbagging-order-worth-rs-105-cr/402625

Sunday, June 21, 2009

BHEL stake sale on the table

Indian Government may shed a 10% stake in state-run Bharat Heavy Electricals Ltd (BHEL), a process expected to bring in around Rs 10,000
crore into the disinvestment kitty.

On Friday, heavy industry and public enterprises minister Vilasrao Deshmukh confirmed the government was considering the proposal to offload a 10% stake in the power equipment maker, where it currently holds a 67.72% stake.

BHEL is currently valued at Rs 28,000 crore and has been classified "navratna," which gives the company management more autonomy than other public sector firms.

A 10% stake sale is likely to raise around Rs 10,000 crore, said a market analyst who asked not be named. The BHEL scrip rose 2.83% to close at Rs 2,090.50 at the BSE on Friday.

"The point of disinvestment (in BHEL) is still under consideration," Mr Deshmukh said in his first media interaction after taking office. "The government definitely has a positive thinking on that line," he said.

BHEL's top officials are now likely to meet Mr Deshmukh on Monday, according to a company official.

The minister also announced that the company would enter into an agreement with Indian Railways for supplying stainless steel energy-efficient EMU coaches on a long term basis, as part of the government's 100-day agenda. BHEL will also synchronise eight thermal and hydro sets to generate 1,200 MW capacity in the next 100 days, he said.

The company will enter into agreements with state government power generation companies to form joint ventures (JVs) for super critical thermal power plants.

BHEL currently makes equipment that can generate 10,000 MW power capacity and is further augmenting this capacity to 15,000 MW per annum by December 2009. It plans to hike its capacity to 20,000 MW by 2011-12.

ref:
http://economictimes.indiatimes.com/Market-News/BHEL-stake-sale-on-the-table/articleshow/4678483.cms

Thursday, June 18, 2009

BHEL secure order for 2 Gas Turbine from Middle East

Bharat Heavy Electricals Limited has achieved yet another milestone in the Middle East region with a prestigious export order for 2 Gas Turbine Generating Units of 126 MW each from the Sultanate of Oman.

Valued at INR 3,750 million, the order envisages supply and supervision of erection and commissioning of 2 numbers state of the art Gas turbine generating units of 126 MW each for a power project being set up by Petroleum Development Oman at Amal, nearly 700 kilometers from Muscat.

This is the first order secured by BHEL as part of the prestigious 6 year ‘Price Agreement for 126 MW rating Gas Turbine Generator packages’ with PDO, signed in January 2009. Secured in the face of stiff international competition, the rate contract is initially valid for 6 years with a provision for further extension by another 3 years.

The Sultanate of Oman is BHEL’s key export market and has been a springboard for entry in the Middle East region with benchmark references established in Oman. With the present order, BHEL will have the unique distinction of having 15 Gas Turbine sets installed in Oman alone.

PDO, a company, majority owned by the Government of Oman with the balance shareholding by Royal Dutch Shell, Partex and Total is BHEL’s most important customer in the Sultanate, for whom it has successfully executed four power projects on EPC basis. Notably, BHEL-supplied sets today account for over 50% of PDO’s installed generating capacity. In addition, BHEL has executed three orders for compressor packages for PDO.

This order demonstrates PDO’s continued confidence in BHEL’s capabilities and competitiveness. This contract will further enhance BHEL’s long term visibility in the overseas Petroleum Sector for Power Plant equipment, which may pave the way for similar opportunities from the hydrocarbon exploration and production majors worldwide.

Significantly, BHEL has earlier secured and executed 14 major contracts in the past 14 years in Oman. These contracts include 7 Power Projects on EPC basis from diverse Sectors viz. Petroleum Sector; Utility and Industry which are testimony to BHEL’s strong presence and acceptability in the Oman market.

For the contract, the Gas Turbines and associated equipment will be manufactured and supplied by BHEL’s Hyderabad plant and the state of the art Control System will be manufactured and supplied by BHEL’s Electronics Division, Bangalore.

ref:
http://steelguru.com/news/index/2009/06/19/OTg5NjA%3D/BHEL_secure_order_for_2_Gas_Turbine_from_Middle_East.html

Monday, June 15, 2009

Bhel demands 10% import duty on power equipment

Bhel has demanded a 10 per cent customs duty on import of equipment for both the projects awarded through the international competitive bidding route and mega power plants.

"We would like to have 10 per cent custom duty on imported power equipment sourced for both mega power projects or the ones being set up through the international competitive bidding route (ICB)," CMD Bhel K Ravi Kumar told PTI over phone.

At present, 5 per cent customs duty is imposed on equipment imported for the projects that have been awarded to the developers through the ICB process. Whereas, there is no duty on power equipment sourced for the mega projects (1,000 Mw and above).

"We want a uniform import duty for type of power projects," Kumar said.

Bhel is the country's largest public sector power equipment player and manufacture units that can generate 10,000 Mw of power annually. The company plans to take this capacity upward to 15,000 Mw by the end of the current financial year.

ref:
http://www.business-standard.com/india/news/bhel-demands-10-import-dutypower-equipment/64679/on

BHEL bags Rs 4000 crore Hindalco contract

Bharat Heavy Electricals Ltd (BHEL) has bagged a Rs 4,015-crore order from Hindalco Industries for supplying boilers, turbines and generators at its 900 mw captive power plant in Orissa.

“Amid stiff competition from domestic and international companies, including Chinese majors, Bhel has bagged an order from Hindalco Industries for the supply and setting up of the main plant package for its upcoming captive power unit at Aditya Aluminium in Sambalpur district of Orissa,” a company statement said.

Hindalco recently placed a similar order with Bhel for the main plant package of its 900 mw captive power unit in Madhya Pradesh.

The equipment for both the projects will be manufactured and supplied by Bhel’s manufacturing units in Trichy, Hyderabad, Bhopal, Bangalore and Ranipet. The company has bagged the order for 12 units of 150 mw sets from Hindalco. “It is the largest captive power plant order placed by any industry in India and also the largest order won by Bhel in its industrial business segment,” the statement said.

These captive power plants of 900 mw capacity each at Mahan and Aditya Aluminium are key to the expansion plans of Hindalco.

Bhel has fully-established, state-of-the-art technology for manufacturing thermal sets up to 1,000 mw rating suited to Indian conditions using Indian as well as imported coal. The company has also introduced new rating thermal sets of 270 mw, 525 mw and 600 mw to meet customer demand.

Bhel currently manufactures equipment that can generate 10,000 mw power and is further augmenting capacity to 15,000 mw per annum by December 2009.

ref:
http://economictimes.indiatimes.com/News/News-By-Industry/Indl-Goods--Svs/Engineering/BHEL-bags-Rs-4000-crore-Hindalco-contract/articleshow/4650795.cms

Thursday, June 11, 2009

NTPC, BHEL to establish a manufacturing unit in Andhra Pradesh

National Thermal Power Corporation (NTPC) and Bharat Heavy Electricals Limited (BHEL) have tied knot to establish a Rs 6,000-crore power equipment manufacturing base in Chittoor district.

Last year, both partners incorporated the joint venture company christened "NTPC-BHEL Power Projects Pvt. Ltd, to manufacture equipment for thermal, hydro, gas and power plants.

The state government has already allotted 750 acres of land for the unit, and further it would provide required infrastructure for the unit like water supply, power and roads as per the Industrial Investment Promotion Policy for mega projects.

The facility is considered as a major industrial project coming up in the state after the Vizag Steel Plant. The plant is expected to provide direct employment to 6,000 people besides indirect employment to over 25,000 persons.

ref:
http://www.topnews.in/ntpc-bhel-establish-manufacturing-unit-andhra-pradesh-2176901

Wednesday, June 10, 2009

Siemens receives follow-up order for power plant components from BHEL

Siemens Energy has received an order from its Indian licensee Bharat Heavy Electricals Ltd. (BHEL) for the supply of key components for a 1,600-megawatt (MW) coal-fired power plant in India. Delivery of the components is scheduled for late 2011. The order volume amounts to over EUR80 million (528.52 crore Indian rupees).

The Siemens scope of supply essentially comprises an SST5-6000 steam turbine, a water-cooled SGen5-3000W generator, an SPPA-T3000 instrumentation & controls system for the turbine-generators, and components for the second turbine-generator.
Only recently BHEL had placed an order with Siemens for two steam turbine-generators for the Barh II coal-fired power plant. “With this second order from India we are together with our Indian partner BHEL further expanding our leading market position for supercritical steam turbine technology,” said Roland Fischer, CEO of the Products Fossil Power Generation Business Unit of Siemens Energy.

More at:
http://machinist.in/index.php?option=com_content&task=view&id=2139&Itemid=2

Thursday, June 4, 2009

BHEL felicitates meritorious students

In an impressive programme organised by BHEL Shiksha Mandal today, MK Dube, Executive Director, BHEL-Bhopal felicitated the meritorious students of 10th & 12th Board Examination as well as successful students in IIT JEE-2009 and other competitive exams. RK Girdonia, Chairman (BSM), PK Sinha, Vice Chairman (BSM), BD Baderia (CMS), Kasturba Hospital, VK Gothi, Secretary (BSM), principals and teachers of BSM run schools were present on this occasion.
Dube, while congratulating the students for scoring high marks in 10th & 12th Board Examinations requested the teachers to guide them in such a way that they successfully crack All India level competitive exams like IIT, AIEEE along with their Board Exams. He said that success in these exams is a steppingstone of their future and they must chalk-out their future action plan to come out with flying colours in their lives.
He further said that these students are the future of the society as well as the country and hence the teachers must put in all their efforts to develop them not only as successful people, but responsible citizens. Congratulating the teachers and students from Jawaharlal Nehru School for excellent performance in JEE-2009 Exam, he asked the teachers of other schools to motivate their students in a better way.

full article at:
http://www.centralchronicle.com/viewnews.asp?articleID=8892

Wednesday, June 3, 2009

BHEL bags Rs 375-crore order from Oman

BHEL on Wednesday said it has bagged a Rs 375-crore order for executing two gas turbine generating units for a project in Oman.

"BHEL has won an export order for two gas turbine generating units of 126 MW each from Oman," a company statement said.

The scope of the order includes supply, erection and commissioning of two gas turbine generating units of 126 MW each for a power project being set up by Petroleum Development Oman at Amal.

For the contract, the gas turbines and associated equipment would be manufactured and supplied by BHEL’s Hyderabad plant and the Control System would be manufactured and supplied by the company's Electronics Division, Bangalore.

With the present order, BHEL's would have installed 15 gas turbine sets in Oman alone, it said.

The company had earlier secured and executed 14 major contracts in the past 14 years in Oman.

These contracts include seven power projects on EPC basis Petroleum Development Oman; Ministry of Housing, Electricity & Water, Oman; and Oman Cement Company.



ref:
http://www.hindu.com/thehindu/holnus/006200906031351.htm

BHEL ties up with IIT for water purification

Bharat Heavy Electricals Ltd (BHEL) is all set to enhance its spending on R&D to enhance the efficiency of water purification processes
like reverse osmosis and thermal desalination technologies. This is to ensure that its power plants get a steady supply of water and that a portion of it can shared with residential communities in the neighbourhood of its units.

Currently, BHEL resorts to desalination of sea water and treating of brackish or sewage water to feed power plants. The R&D projects will be developed to cater to the needs of future power plants that are likely to be located away from rivers or water bodies. "Earlier, power plant used to be located near rivers or water bodies. In future, plants will located either close to coal mines or ports to minimise logistic cost. Also, availability of water will be difficult in coming years," said a BHEL official.

As part of the initiative, BHEL's Tiruchi and Ranipet units have entered into an industry-academia collaboration with the Indian Institute of Technology-Madras (IIT-M) to help foster research on new technologies that can make its power plants environment-friendly. Given the fact that all its units are currently coal-fired thermal power plants which emit vast amounts of carbon, the plan can also be interpreted as an effort to negate the adverse effects of global warming.

"IIT and BHEL will work on time-bound projects to identify future technologies for power plants. The number of projects is yet to be finalised," said BHEL Ranipet unit's executive director A V Krishnan, after signing the MoU at IIT-M on Wednesday. The joint research will focus more on sea water desalination and pollutant control system. Already, a ceramic membrane is being developed for reverse osmosis by IIT. Other areas of R&D collaboration will include super-critical steam generators, modelling and analysis, material characterisation, utilisation of nano materials, fuel cells and bio mass and zero emission technologies.

more at:
http://timesofindia.indiatimes.com/Chennai/BHEL-ties-up-with-IIT-for-water-purification-/articleshow/4614358.cms

Tuesday, June 2, 2009

BHEL commissions solar power plants in Lakshadweep

Bharat Heavy Electricals on Tuesday said it has completed two 100 KWp solar power plants in the Lakshadweep islands.

“BHEL has commissioned two solar power plants of 100 KWp (Kilowatt peak) each in Lakshadweep,'' the company said in a statement.

With this, BHEL has commissioned 11 solar power plants in the Lakshadweep islands, adding over 1MW of solar energy to the power-generating capacity of the coral islands, the statement said.

The plants have been set up at Chetlat and Amini islands of Lakshadweep.

BHEL had earlier commissioned solar power plants in the islands of Agatti, Andrott, Bangaram, Bitra, Kadmat, Kalpeni, Kavaratti, Kiltan and Minicoy, it said.

Apart from substantial fuel savings up to three lakh litres per year, the projects will greatly reduce the problems faced in the transportation and storage of diesel, besides safeguarding the ecology of the coral islands hitherto threatened by the use of diesel.

The solar photo-voltaic modules are manufactured at the company's facility in Bangalore. - PTI

ref:
http://www.thehindubusinessline.com/blnus/02021497.htm

Thursday, May 28, 2009

BHEL: Powerful position

BHEL: Powerful position

A strong order book and better execution helped Bharat Heavy Electricals Ltd (BHEL) report a robust 46.3 per cent y-o-y growth in revenues at Rs 10,540 crore for the March 2009 quarter. Since BHEL maintains a raw material inventory of six-nine months, it did not gain from the decline in metal prices seen in recent months; its raw material cost for the quarter was up nearly 80 per cent. As a result its opm dropped by over 300 basis points y-o-y to 18.5 per cent. However, BHEL could reduce other expenses and employee costs by 20 per cent each even as it made provisions for wage revisions. At the net level, profits grew 21 per cent to Rs 1,347 crore.

For 2009-10, margins could improve by 200-250 basis points on the back of lower commodity prices and the absence of provisioning for wage revisions. The benefits of increased capacity (up 60 per cent to 10,000 Mw in March 2009) will also help. Besides, BHEL is expanding its vendor and sub-contractor base to strengthen its supply chain, all of which put together should lead to better economies of scale.

Analysts expect revenues to grow as 22-25 per cent and net profit to go up 30 per cent in 2009-10. BHEL’s order backlog was strong at Rs 117,000 crore, over four times last year’s revenues. However, new order inflow will be an important number to watch this year: The BHEL management had provided a guidance of Rs 50,000 crore of new orders this year, which is nearly Rs 10,000 crore lower than last year.

At Rs 2,118, the stock is up 32 per cent in the last month as it will be a key beneficiary of any economic revival and increased capex in the power sector. At the current levels, it is trading at 24 times its estimated 2009-10 earnings, reflecting rich valuations.

ref:
http://www.business-standard.com/india/news/bhel-powerful-position/359465/

Wednesday, May 27, 2009

BHEL Q4 net up 22% at Rs 1,347 cr

4 net up 22% at Rs 1,347 cr

Bharat Heavy Electricals Limited (BHEL) reported a rise of 21.35 per cent in the net profit to Rs 1,347 crore in the three months ended March 31, 2009 as against Rs 1,110 crore in the corresponding quarter in the previous year.

The equipment major reported nine per cent increase in net profit for 2008-09 at Rs 3,138 crore as compared to Rs 2,859.30 crore in 2007-08. Net sales were up 35.4 per cent at Rs 26,234 crore in 2008-09 compared to Rs 19,365.50 crore in 2007-08.

BHEL also informed the Bombay Stock Exchange that the board of directors of the company at its meeting has recommended a final dividend of 80 per cent in addition to the interim dividend of 90 per cent already paid.

ref:
http://www.business-standard.com/india/news/bhel-q4-net22at-rs-1347-cr/62974/onBHEL Q

Tuesday, May 26, 2009

BHEL bags order worth Rs 703 cr for power project

Bharat Heavy Electricals (BHEL) here, has bagged an order for the main plant package at the upcoming Bela Thermal Power Project (BTPP) in Maharashtra, involving a new rating unit of 270 MW.

In a press release here today, the company said the order worth Rs 703 crore for the greenfield power project located at Bela in Nagpur district, has been placed on BHEL by Ideal Energy Projects Limited.

The scope of work in the contract envisages design, engineering, manufacture, supply, erection and commissioning of boiler, steam turbine and turbo-generator, along with associated auxiliaries and state-of-the-art controls and instrumentation, including generator and unit transformers.

BHEL has fully established state-of-the-art technology for the manufacture of thermal setups to 1,000 MW rating, the release added.

Coming close on the heels of an order for a 600 MW thermal power plant of Korba West Power Company Limited in Chhattisgarh, the order from Ideal Energy Projects was a testimony to the confidence reposed by Independent Power Producers in BHEL's capabilities.

Major private sector customers too have been reposing confidence in BHEL, and in fiscal 2008-09, orders worth more than Rs 13,000 crore were placed on the company by Jindal Power, Jaiprakash Power Ventures, GVK Power, Hindalco, HPCL Mittal Energy Limited, Adani Power, Tatas and ACC, among others, the release added.


ref:
http://www.sakaaltimes.com/2009/05/26123932/BHEL-bags-order-worth-Rs-703-c.html

Tuesday, May 19, 2009

Bhel may get orders worth Rs7,000 cr

Bharat Heavy Electricals Ltd (Bhel) expects as much as Rs7,000 crore of new orders in the first quarter as pending government projects are cleared following the Congress’ electoral victory. We have several orders in the pipeline, chairman K. Ravi Kumar said on Monday in a phone interview from his New Delhi headquarters.

ref:
http://www.livemint.com/2009/05/18235127/Corporate--Bhel-may-get-order.html?h=B

Monday, May 18, 2009

BHEL Trichy asks subcontractors to up capacity

The Tiruchirappalli unit of Bharat Heavy Electricals Limited has asked its subcontractors to increase their capacity to 50 per cent from the current 32 per cent in order to to achieve a turnover of Rs 10,000 crore for the current financial year.

V Ananthakrishnan, executive director, BHEL – Tiruchy, said they had asked the subcontractors to increase their capacities to manufacture headers and panels since the requirement for these products would increase in the coming years. He wanted the firms to follow the just in time concept to avoid inventory buildup.

The number of subcontracting firms increased from 346 to 429 in the last one year.

BHEL Small and Medium Industries Association secretary M Variavel said while BHEL Tiruchi was planning to invest around Rs 1,200 crore by 2011-12, the vendors in and around Tiruchy would invest Rs 200-300 crore during the same period.

In the last two years, vendors invested around Rs 100 crore to import machines that automate welding of boiler support structures and to increase the capacity.

ref:
http://www.business-standard.com/india/news/bhel-trichy-asks-subcontractors-tocapacity/358484/

Sunday, May 17, 2009

BHEL establishes state of the art technology

BHEL has fully established state of the art technology for the manufacture of thermal sets up to 1,000 MW rating suited to Indian conditions using Indian as well as imported coal. It has also introduced new rating thermal sets of 270 MW, 525 MW and 600 MW to meet customer demand and orders for 86 numbers of 500 MW to 600 MW rating sets have been won by the company, so far.

Significantly, major private sector customers have been reposing confidence in BHEL and in fiscal 2008-09 itself, orders worth over INR 13,000 Crore were placed on the company by Jindal Power, Jaiprakash Power Ventures, GVK Power, Hindalco, HPCL Mittal Energy Ltd., Adani Power, TATAs and ACC, among others.

In fiscal 2008-09, BHEL won orders worth INR 44,407 crore, in its Power Sector business segment, for 17,020 MW of power plants. This included the first ever orders for 800 MW supercritical boilers, 660 MW supercritical turbine generator sets and largest number of orders for 8 sets of 600 MW.

Significantly, 100% share of the R&M market for thermal sets was retained for the third successive year with orders of INR 2,770 Crore including supply of spares and services.

It is reported that BHEL has bagged an order worth INR 1,75 crore from Korba West Power Company Limited for the main plant package of the upcoming Avantha Bhandar thermal power project in Raigarh district of Chhattisgarh, involving one new rating unit of 600 MW.

However, the scope of work includes design, engineering, manufacture, supply, erection and commissioning of steam turbine, generator, boiler along with associated auxiliaries and state of the art controls and instrumentation for the power plant.

ref:
http://steelguru.com/news/index/2009/05/18/OTQ3NzA%3D/BHEL_establishes_state_of_the_art_technology.html