BHEL executes two solar plants in Maharashtra

The electronics division of Bangalore-based Bharat Heavy Electricals Limited (BHEL) has commissioned two grid-connected solar power plants of 2 MW each at Katol near Nagpur for Sepset Constructions Ltd. and Citra Real Estate Ltd. recently. These projects are commissioned under rooftop photovoltaic and Small Solar Power Generation Programme (RPSSGP) of IREDA under Jawaharlal Nehru National Solar Mission (JNNSM).

Each of these PV plants are daily exporting 9,000 to 10,000 units of solar energy to 11kV grid of Maharashtra State Electricity Development Corporation Limited (MSEDCL) at Katol, BHEL said in a statement.

Commissioning of the above two Solar Power Plants is based on the EPC contract received by BHEL from the respective customers for setting up grid-connected solar power plants. BHEL is also in the process of setting up another 2-Mw PV power plant near Bareilly in Uttar Pradesh, based on an order from /s Priapus Infrastructure Ltd.

ref:
http://www.electroiq.com/photovoltaics/2011/12/1571508954/bhel-executes-two-solar-plants-in-maharashtra.html

BHEL looks for foreign player for NRTM

Bharat Heavy Electricals Limited (BHEL) has proposed international partnership to tap the Nuclear Reactor Turbine Market (NRTM) in the country, Heavy Industries and Public Enterprises Praful Patel told the Rajya Sabha on Wednesday.

Patel said in a written reply to the house: "BHEL is further making efforts to associate with other international nuclear reactor vendors for possible cooperation to manufacture the components of higher size reactors."

A Joint Venture Company (JVC) for execution of Conventional Island (Turbine side) for 700 MWe nuclear power plants is contemplated to be set up between Nuclear Power Corporation of India Limited (NPCIL), BHEL and Alstom of France, he informed.

BHEL has entered into a Memorandum of Understanding (MOU) in Feb 2011 with NPCIL and Alstom for formation of JVC for execution of Conventional Island (Turbine side) of Nuclear Power Plant for 700 MWe and above.

more at:
http://www.indiablooms.com/BusinessDetailsPage/2011/businessDetails211211f.php

Difficult to give timeframe for ONGC, BHEL disinvestment: Govt

The Government today said it can't give a timeframe for the completion of disinvestment process in public sector firms ONGC, BHEL and NBCC, because of various factors including market conditions.

"Disinvestment proposals of Oil and Natural Gas Corp, Bharat Heavy Electricals Ltd and National Building Construction Corp are at various stages of implementation.

"It is difficult to give any timeframe for completion of the transactions as the same would depend on a number of factors like appointment of independent director, preparedness of the company as well as the market conditions," Minister of State for Finance S S Palanimanickam said in a written reply in Lok Sabha

more at:
http://economictimes.indiatimes.com/news/economy/finance/difficult-to-give-timeframe-for-ongc-bhel-disinvestment-govt/articleshow/11131691.cms

BHEL Expansion in Power Sector

Bharat Heavy Electricals Limited (BHEL) strives to improve its cost competitiveness and quality and has planned to attain the capacity to manufacture 20,000 MW power equipment by March, 2012.

BHEL strives to retain cost competitiveness by exploring cheaper options for inputs through global sourcing, indigenization, and various integrated operations, improvement initiatives like design to cost, purchase and supply chain management etc. BHEL has adopted European Foundation for Quality Management (EFQM) model of business excellence apart from obtaining ISO (International Organization for Standardization) accreditation for all major Units of the Company. The manufacturing capability enhancement for the main power equipment like Boiler, Turbines, Generator and Electronic Cubicles is mainly being undertaken in a brown-field expansion mode at the existing major units of the Company at a total sanctioned capital expenditure of approximately Rs. 1,593 Crore.

more at:
http://pib.nic.in/newsite/erelease.aspx?relid=78775

NTPC to place Rs 43,200 cr equipment orders in FY12

India’s biggest electricity producer NTPC on Wednesday said it would place orders for Rs 43,200 crore worth of power equipment for nine plants of 800 mw each in 2011-12. It would also separately place an order for Rs 1,050 crore with Bhel for a 500 mw power plant.

NTPC plans to complete placing of these orders in this financial year, company chairman Arup Roy Choudhury said. These units are in Kudgi, Karnataka; Gajmara and Darlapalli in Orissa and Lara in Chhattisgarh.

more at:
http://www.mydigitalfc.com/news/ntpc-place-rs-43200-cr-equipment-orders-fy12-102

NTPC-BHEL jt venture to begin operations next fiscal

NTPC-BHEL Power Projects Pvt Ltd (NBPPL), a 50:50 joint venture of state-owned NTPC and BHEL, for manufacturing power equipment, will start operations next fiscal, a senior company official has said.

“The infrastructure for NTPC-BHEL joint venture company would be ready by March 2012...and it would start production next year (financial year),” NTPC Chairman-cum-Managing Director, Mr Arup Roy Choudhury, who is also the Chairman of NBPPL, told reporters on the sidelines of National Energy Conservation Day here.

The company already has orders in hand, which it received from NTPC and BHEL at the time NBPPL was incorporated in April 2008.

more at:
http://www.thehindubusinessline.com/companies/article2714323.ece

BHEL experts to inspect CSTPS unit

Experts of Bharat Heavy Electricals Limited (BHEL) have reached Chandrapur to find out the reasons for repeated breakdown of Chandrapur Super Thermal Power Station (CSTPS) unit no 6.

The 500 MW unit had broken down three times in last one month as the same coil of platem superheater was getting burnt down everytime. "The coil first got burnt down on November 14 due to overheating. We repaired it on 16{+t}{+h}{+.} It again failed on December 5. We repaired it by December 10 but the coil again got burnt on 11{+t}{+h}. We then decided to ask BHEL to send experts to diagnose the problem and suggest a solution," Suresh Gohotare, chief general manager of CSTPS said.

more at:
http://timesofindia.indiatimes.com/city/nagpur/BHEL-experts-to-inspect-CSTPS-unit/articleshow/11087489.cms

BHEL provides uniforms to 78 destitute children under CSR initiative

As part of its Corporate Social Responsibility (CSR) initiative, BHEL, Tiruchi, donated school uniforms to 78 inmates of Tamil Nadu Manavar Illam, Tiruverumbur, a home for destitute children, recently.

P. Nainar, General Manager, Human Resource, and S. S. Pillai, General Manager, Public Relations and Administration, handed over the uniforms worth Rs. 50,000, to the children.

Mr.Nainar said the BHEL would distribute uniforms to 1000 school children this year. Scholarships worth Rs.10 lakh will be granted this year to students belonging to the downtrodden and weaker sections of the society for pursuing higher studies, he said, adding that the company has earmarked Rs. 1.55 crore for its CSR activities this year

N.P.M. Manoharan, Secretary, Parimanam Primary School; M. Palanivel, Additional General Manager, Human Resource;

N.P.M. Balasubramaniam, Secretary of the home; and A.Antony, Convener of CSR projects, offered felicitations.

ref:
http://www.thehindu.com/news/cities/Tiruchirapalli/article2708844.ece

Govt confident of generating surplus power for export

With half a dozen power equipment firms slated to set up units in India, the government today expressed confidence of meeting the domestic power demand and generating surplus for export.

"We had only Bharat Heavy Electricals Ltd ( BHEL). Now, six big companies are coming in joint ventures and the country will not face any power problem. I am confident that the country will export power to other countries," Power Minister Sushilkumar Shinde said during the Question Hour in the Rajya Sabha.

Pointing out that the government has kept a huge target of adding power generation capacity of 78,777 mega watt(MW) for the 11th Five Year Plan (2007-12), he said that "the problem is that there are not many equipment manufacturing companies."

In the 10th Five Year Plan, the country was able to produce 22,000 MW, though the target was 42,000 MW, he added.

more at:
http://economictimes.indiatimes.com/news/news-by-industry/energy/power/govt-confident-of-generating-surplus-power-for-export/articleshow/11081150.cms

PowerMin for 14 pc import duty on power equipment

The government has circulated a draft Cabinet note proposing imposition of 14 per cent duty on imports of power equipment, a proposal aimed at providing a level-playing field to domestic manufacturers like BHEL and Larsen & Toubro.

"We sent the draft note to the Finance Ministry and the Ministry of Heavy Industry and Public Enterprises for the imposition of 5 per cent customs duty, 5 per cent special additional duty and 4 per cent countervailing duty on imported power equipment," a Power Ministry official said.

Domestic power equipment makers like BHEL and L&T have been demanding levy of 14 per cent duty on imported electrical equipment, mainly arising from China, in order to provide them a cushion against local taxes.

more at:
http://economictimes.indiatimes.com/news/economy/policy/powermin-for-14-pc-import-duty-on-power-equipment/articleshow/11070503.cms

BHEL gets three Vishwakarma awards

Employees of BHEL, Tiruchi, have won three Vishwakarma National Awards – two class ‘A' and one class ‘C' – for their innovative suggestions leading to cost reduction, and higher productivity, safety and quality of products.

RECOGNITION

In recognition of the suggestions that also obviated the need to import products and paved way for energy conservation and technology upgrade, 13 employees were honoured with the 'Vishwakarma Rashtriya Puraskars' for 2010', by the Union Minister of Labour & Employment Mallikarjun Kharge at New Delhi recently. With these awards, the number of Vishwakarma awards won by BHEL has crossed 20.

More at:
http://www.thehindu.com/news/cities/Tiruchirapalli/article2700968.ece

BHEL bags ArcelorMittal equipment contract for Ukraine plant

State-run BHEL today said it has bagged a Rs 40 crore contract to supply equipment for a captive power plant being set up at global steel giant ArcelorMittal's plant in Ukraine.

BHEL has bagged the contract for supplying the steam turbine generator (STG) package for the captive power project at ArcelorMittal Group's steel plant at Kryviy Rih, in Ukraine, an official statement said.

BHEL's scope of work under this contract involves design, engineering, manufacture, supply and supervision of the erection and commissioning of the 27-MW steam turbine & generator package, including controls and instrumentation (C&I).

The project is to be executed by BHEL within a contractual completion deadline of 18 months. The steam turbine generators and C&I systems are to be manufactured at BHEL's Hyderabad plant and its electronics division in Bangalore, respectively.

more at:
http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/engineering/bhel-bags-arcelormittal-equipment-contract-for-ukraine-plant/articleshow/10942738.cms

Bhel’s cash flow declines due to delayed payments

Cash flow at state-owned Bharat Heavy Electricals Ltd (Bhel) is slowing because private power project developers are delaying payments for dispatched material, which could potentially impact profits at India’s largest power generation equipment manufacturer.

“Our outstandings from the power sector and industry are going up,” a company executive said on condition of anonymity. “Some private sector developers are not paying on time.”

The payments that are due (from various debtors) rose 38.29% to Rs.30,569.29 crore at the end of the September quarter from Rs.22,103.93 crore in the year earlier.

more at:
http://www.livemint.com/2011/11/28201425/Bhel8217s-cash-flowdecline.html?atype=tp

BHEL, NTPC play turnaround specialists

Public sector undertakings are seldom known to script a corporate turnaround.

BHEL and NTPC Ltd, though, are exceptions. Both have managed to turn around two perpetually bleeding state-owned undertakings that were taken out of the Board for Industrial and Financial Reconstruction (BIFR) and placed under their respective charge.

more at:
http://www.thehindubusinessline.com/industry-and-economy/economy/article2644268.ece?homepage=true&ref=wl_home

BHEL Q2 profit down by 23pct

Bharat Heavy Electricals has posted a net profit of INR 14.12 billion for the quarter ended September 30th 2011 as compared to INR 11.42 billion for the quarter ended September 30th 2010, representing an increase of 23.62%.

The company’s net sales has increased 23.66% from INR 83.28 billion for the quarter ended September 30th 2010 to INR 102.99 billion for the quarter ended September 30th 2011.

(Sourced from IRIS.com)

ref:
http://www.steelguru.com/indian_news/BHEL_Q2_profit_down_by_23pct/236655.html

BHEL, Bhopal manufactures Indigenously designed Live Steam Reheater

The HCM Department of BHEL, Bhopal has successfully manufactured the indigenously designed Live Steam Reheater (LSR). BHEL is the first Indian manufacturer to possess this technology. It took the company four years of hard work to give final shape to the LSR project. Ultra modern technology equipment and 140mm defect free welding of special alloy steel was utilised in the manufacturing of the LSR.

The concluding test on the LSR was conducted in presence of Nuclear Power Corporation and it met all prescribed parameters.

This is the highest ever pressure designed vessel for steam reheating. In addition to meeting the functional requirements, it can withstand internal forces, earthquakes and heavy piping loads.

U.C. Shrivastava, GM, PDX & J. K. Bhati, GM, Quality flagged off the LSR for dispatch to be set up at 500 MW Pressurized Fast Breeder Reactor at Kalpakkam, Chennai. N.R. Edkie, GM, Fabrication, Subhash Saxena, GM, CDC, D. K. Dixit, GM, WEX & MOD, Devdatt Pathak, AGM-HCM and other senior officials were also present during the flagging off ceremony.

ref:
http://machinist.in/index.php?option=com_content&task=view&id=3978&Itemid=2

HCM Dept Bhel successfully manufactures LCR

HCM Department BHEL, Bhopal adding one more gem to its glorified crown has successfully manufactured the indigenously designed Live Steam Reheater, LSR. General Manager, PDX UC Shrivastava and General Manager, Quality JK Bhati flagged off the LSR for dispatch to be set up at 500 MW Pressurised Fast Breeder Reactor at Kalpakkam, Chennai. General Manager, Fabrication NR Edkie, General Manager, CDC Subhash Saxena, General Manager, WEX & MOD DK Dixit, AGM-HCM Devdatt Pathak and other senior officials were also present on the occasion.

BHEL has now become the first Indian manufacturer to possess the above technology. This is the highest ever pressure designed vessel of steam to steam reheating. Ultra modern technology, equipments and 140mm defect free welding of special alloy steel was used in the manufacturing of LSR. HCM Department after four years of hard work gave final shape to the high quality technological innovation. The concluding test was conducted in presence of the esteemed customer Nuclear Power Corporation (NPC) meeting all prescribed parameters.

more at:
http://www.dailypioneer.com/state-editions/bhopal/20951-inbrief.html

BHEL Q2 profit climbs 23.6%

Bharat Heavy Electricals (BHEL) has posted a net profit of Rs 14.12 billion for the quarter ended Sept. 30, 2011 as compared to Rs 11.42 billion for the quarter ended Sept. 30, 2010, representing an increase of 23.62%.

Net sales has increased 23.66% from Rs 83.28 billion for the quarter ended Sept. 30, 2010 to Rs 102.99 billion for the quarter ended Sept. 30, 2011.

Shares of the company declined Rs 6.7, or 2.07%, to settle at Rs 317.40. The total volume of shares traded was 265,894 at the BSE (Monday).


ref:
http://www.myiris.com/newsCentre/storyShow.php?fileR=20111114171315715&dir=2011/11/14&secID=resultanal&code1=&code=

B. Prasada Rao, CMD, BHEL receives Ninth Wärtsilä Mantosh Sondhi Award

Wärtsilä India has conferred the Ninth Wärtsilä Mantosh Sondhi Award on B. Prasada Rao, Chairman & Managing Director, Bharat Heavy Electricals Ltd (BHEL) for his outstanding contribution to the energy sector in India. The award ceremony was held at the Trident, Mumbai, yesterday and Shri. B. Prasada Rao accepted the prestigious award from Björn Rosengren, President and CEO, Wärtsilä Corporation.

B. Prasada Rao is the Chairman and Managing Director of Bharat Heavy Electricals Limited, a USD 9.65 billion company that ranks among the leading companies of the world engaged in the field of Power Plant Equipment. He holds a Masters degree in Industrial Engineering from NITIE, Mumbai and is a Mechanical Engineering Graduate from Jawaharlal Nehru Technological University, Kakinada, Andhra Pradesh.

ref:
http://www.indiainfoline.com/Markets/News/B.-Prasada-Rao-CMD-BHEL-receives-Ninth-W%C3%A4rtsil%C3%A4-Mantosh-Sondhi-Award/5286625729

BHEL to build four classrooms at government school for blind

The Bharat Heavy Electricals Limited, Tiruchi, has issued work orders for construction of four classrooms in the Government Girls' Higher Secondary School for the Blind here, at an estimate of Rs.20 lakhs, under its Corporate Social Responsibility (CSR) Scheme.

On Friday, General Manager – Human Resource, P.Nainar, and Additional General Manager – Public Relations and Administration, BHEL, S.S.Pillai, distributed uniforms worth Rs.75,000 to 117 students in the school.

Mr.Nainar said the BHEL has set a target of distributing uniforms to 1,000 school children this year under CSR scheme. Also, Rs.10 lakhs would be spent towards higher education scholarships for students in the BPL families.

Likewise, improvements in infrastructure in villages surrounding BHEL will be carried out alongside providing educational assistance and employment opportunities through vocational training.

BHEL will soon select a village for adoption and make it a model entity in education and health.

G.Vijayakumari, School Headmistress; K.Murali, Deputy General Manager, Public Relations and Administration; A.Anandan, Senior Manager – Civil; and A.Antony, Senior Administrative Officer, took part.


ref:
http://www.thehindu.com/news/cities/Tiruchirapalli/article2621127.ece

ONGC may join RINL, BHEL in Rs 2000 crore seamless tube JV

State-owned Oil and Natural Gas Corp has expressed interest in partnering Rashtriya Ispat Nigam and Bharat Heavy Electricals on a proposed Rs 2,000 crore, joint venture seamless tubes manufacturing plant at Vizag and talks are on between the parties.

"While BHEL has already agreed to join as a joint venture partner in the proposed seamless tube mill at Vizag, ONGC has also evinced interest and discussions are in progress," RINL Chairman and Managing Director A P Choudhary told PTI.

Choudhary favoured the inclusion of ONGC in the venture and indicated that there should not be any resistance from BHEL to bring the oil major on board, since seamless tubes find application in a wide area, including the energy, oil and gas and water sectors.

"It will be win-win for all of us," he said. While he stated that the shareholding pattern of the proposed venture is yet to be finalised, he asserted the majority stake would be held by RINL, as the proposed facility would be housed inside RINL's Vizag facility.

"The mill will have four lakh tonnes per annum seamless tube installed production capacity. Total investment here will be over Rs 2,000 crore," Choudhary said.

more at:
http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/engineering/ongc-may-join-rinl-bhel-in-rs-2000-crore-seamless-tube-jv/articleshow/10678710.cms

BHEL Trichy conducts Vendor Meet on Insulation and Refractory Materials

A V Krishnan, Executive Director, BHEL, Tiruchirappalli said that though a minimum of Rs. 2 crore was spent on these bought out materials weighing about 700 to 1100 MT a boiler, they formed crucial role in completing the power projects without time delay. Seeing a matching growth opportunity for the Industry in the next five year plan period, Mr Krishnan said that while in 2010-11, BHEL’s annual requirement of light resin bonded (LRB) wool mattress was 19,600 MT, this would be 23,000 MT in 2011-12 and 27,000 MT in 2012-13.

"BHEL is expected to grow 20-25 per cent year on year between 2012 and 2015, matching with the country’s next five year plan growth strategy with respect to power sector," he said.
Cautioning that growth also had its challenges like more demanding customers and intense competition, he wanted the one day meet to deliberate on making the supply-chain management more agile and concluding a Memorandum of Understanding (MoU) on techno-commercial aspects to reduce procurement process time. He also wanted the meet to address the logistics issues like transportation and storage at sites with the ultimate aim of project completion faster and gaining customer satisfaction against a demanding customer profile of 60 percent of whom were now private players.

more at:
http://machinist.in/index.php?option=com_content&task=view&id=3944&Itemid=2

RINL, BHEL to set up seamless tube mill at Vizag for Rs 2K crore

State-owned steel maker RINL and power equipment manufacturer BHEL will soon sign an agreement to form a joint venture for putting up a high-end seamless tube mill at Vizag, entailing over Rs 2,000 crore investment.

"The proposal has already been discussed in the Board and will be considered in the next meeting. Hopefully, the joint venture agreement will be shortly signed," Rashtriya Ispat Nigam Chairman and Managing Director A P Choudhary told media.

The shareholding pattern of the joint venture is yet to be finalised, he said, but added that since the mill would be located inside RINL's Vizag facility, RINL would have a majority stake in the venture.

"The mill will have four lakh tonnes per annum seamless tube installed production capacity. Total investment here will be over Rs 2,000 crore," Choudhary said.

More at:
http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/engineering/rinl-bhel-to-set-up-seamless-tube-mill-at-vizag-for-rs-2k-crore/articleshow/10654384.cms

Assocham against higher import duty on power equipment

Industry body Assocham today said that any move to hike import duty on power equipment will send "negative signals" to the country's trade partners.

The chamber also said the move would affect investment climate in the key sectors.

"The government's proposal to hike tariff on imports of some Chinese goods or impose a complete ban on specific items like power and telecom equipment will send negative signals to India's trade partners," it said.

The indigenous power equipment makers have been demanding a levy of 14 per cent on imported equipment -- mainly from China -- in order to provide them a cushion against local taxes.

The move for import duty is being opposed by the private sector power producers.

Giving some comfort to BHEL and L&T, the government has broadly agreed to a level-playing field for the domestic power equipment manufacturers against imports at zero or low duty.

At present, 5 per cent duty is levied on equipment imported for projects less than 1,000 MW capacity power projects. No levy is charged on imports for projects above 1,000 MW capacity.

more at:
http://economictimes.indiatimes.com/news/news-by-industry/energy/power/assocham-against-higher-import-duty-on-power-equipment/articleshow/10645020.cms

BHEL shares jump on import duty talks

Shares in state-run power equipment maker Bharat Heavy Electricals rose to a nine-month high on Thursday after the industry ministry said it will seek duty on Chinese and Korean imports to level the field for domestic vendors.

Heavy industries minister Praful Patel said he would write to power minister Sushilkumar Shinde and finance minister Pranab Mukherjee seeking imposition of duty to give homegrown companies such as Bhel and L&T a level playing field against cheaper imports.

Patel had convened a meeting of top bureaucrats and public sector companies on Thursday to consider the demand of domestic manufacturers to curb imports of power equipment. Indian companies have been demanding a 14% duty on imported equipment, particularly from China, as a cushion against local manufacturing taxes.

more at:
http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/bhel-shares-jump-on-import-duty-talks/articleshow/10599531.cms

BHEL Tiruchirappalli observes quality month

The employees of Bharat Heavy Electricals Limited (BHEL), Tiruchirappalli observed the beginning of Quality Month, today, rededicating themselves for the effective implementation of Total Quality Management and meeting fully the expectations of all their stake holders consistently.

"In the prevailing business environment, quality has taken an important place with respect to performance of equipment supplied to power and Industry sectors. Now, customers do not tolerate defects and they look at the performance of the equipment strictly complying with the highest standard," said AV Krishnan, Executive Director, BHEL, Triuchirappalli.

more at:
http://machinist.in/index.php?option=com_content&task=view&id=3902&Itemid=2

BHEL agrees to pay water dues

The water crisis in BHEL township was partially resolved on Monday as the Bhopal Municipal Corporation (BMC), agreed to supply water to the township after the BHEL administration assured to pay the pending water cess due to the corporation. One mgd of water was supplied on Monday as against the demand of 3 mgd. The payment of the bill has been pending for the last decade.

BHEL executive director S S Gupta on Sunday had assured the mayor that Rs 2.15 crore dues would be paid soon. "We decided to resume the water supply only after we received a verbal assurance from the BHEL officials that we will receive the due amount in a short while," said Mayor Krishna Gaur.

ref:
http://timesofindia.indiatimes.com/city/indore/BHEL-agrees-to-pay-water-dues/articleshow/10564128.cms

India plans duties on import of Chinese power equipment

In a move that may spell trouble for private sector utilities and Chinese makers of power generation equipment, heavy industries minister Praful Patel has called a meeting on Thursday to discuss and push for the imposition of customs duties on imports of such equipment.

The meeting will be attended by officials from the ministries of heavy industries, commerce and power, and follows demands by local manufacturers to restrict Chinese power equipment imports.

“This is because domestic companies have been long complaining that they are becoming increasingly uncompetitive due to the cheaper power equipment imported from China,” said a top government official aware of the meeting, who requested anonymity. “If customs duty along with excise duty is imposed on Chinese power equipment, then the effective tax on such imports will be around 17-18%.”

Bharat Heavy Electricals Ltd (Bhel) and Larsen and Toubro Ltd (L&T) have been lobbying with the government to limit Chinese competition. According to the contours of an earlier proposal, the imported equipment will be subjected to 5% customs duty, 10% countervailing duty and a special additional duty of 4%.

ref:
http://www.livemint.com/2011/10/30224105/Indiaplansduties-on-import-o.html?atype=tp

BHEL not to downsize Kudankulam team

Bharat Heavy Electricals Ltd (BHEL) has said that it has no plans to call back employees deployed at the Kudankulam Nuclear Power Project (KNPP) site in Tamil Nadu.

"We do not have any plans to call back our employees or downsize our workforce at Kudankulam," P.R. Shriram, executive director at BHEL-Power Sector Southern Region (PSSR), told IANS.

However, a senior Nuclear Power Corporation of India Limited (NPCIL) official told IANS that BHEL has expressed its concern about the continued delay in the project.

It plans to reduce its contract labour size owing to stoppage of work due to people's agitation, he said.

India's nuclear power plant operator, NPCIL, is building two 1,000 MW nuclear power reactors with Russian technology and equipment in Kudankulam, around 650 km from here.

The first unit is expected to go on stream in December. The project cost is estimated at Rs.13,000 crore.

BHEL is executing the turbine erection and several other projects for us, said a NPCIL official.

Meanwhile, the relay fast protest against the nuclear power project entered its fourth day Friday at Idinthakarai near Kudankulam.

"Today (Friday), people from Kootapulli are on fast. Around 2,000 people are at the protest site," People's Rights Movement coordinator S. Sivasubramanian told IANS.

ref:
http://twocircles.net/2011oct21/bhel_not_downsize_kudankulam_team.html

Bharat Heavy Electricals Limited : BHEL employees win 8 Prime Minister's Shram Awards

BHEL employees have once again bagged 8 Prime Minister’s Shram Awards (2008 to 2010) among a host of Public & Private Sector companies in the country.
The awards were presented by the Hon’ble Prime Minister of India, Dr. Manmohan Singh, at a function held in New Delhi. Thirteen employees of BHEL, from its various units located across the country, shared 8 Shram awards including two Shram Bhushan, two Shram Vir and four Shram Shree awards for the years 2008-2010.

Instituted in 1985 by the Ministry of Labour, Government of India, the Shram Awards carry a cash prize and a Sanad. BHEL employees have regularly been winning these prestigious awards, since inception. Shram awards are given in recognition of distinguished performance, innovative abilities, outstanding contribution in the field of productivity and exhibition of exceptional courage and presence of mind.

Aimed at encouraging individuals to take up improvement projects for capability building and for continuous improvement in every sphere of activity, an Improvement Projects Rewards Scheme (IMPRESS) has been introduced company-wide. The scheme is e-network based and provides weightage for various aspects like relevance to the department, innovation/creativity, meeting targets, institutionalization, deployability and financial impact.

BHEL continually invests in education and training programmes for employees witha view to constantly upgrading their skills and knowledge. The company has several employee productivity enhancement initiatives in place, such as multi-skilling of employees, effective utilisation of critical machines through three-shift, 24-hour operations and redeployment of employees.

ref:
http://www.4-traders.com/BHARAT-HEAVY-ELECTRICALS-9064577/news/BHARAT-HEAVY-ELECTRICALS-LIMITED-BHEL-employees-win-8-Prime-Minister-s-Shram-Awards-13840810/

Bhel eyes power projects worth $1.5 bn in Africa

State-owned Bharat Heavy Electricals Ltd (Bhel) will develop power projects in Uganda and Nigeria as part of India’s plans to broaden economic engagement with African countries to secure access to oil and gas blocks in the continent.

Bhel has separately partnered with private sector companies—Hindustan Construction Co. Ltd (HCC) and Abir Infrastructure Pvt. Ltd —for developing the 700 megawatts (MW) Karuma hydropower project in Uganda at an investment of around $1.5 billion. The Karuma project is being developed by Uganda’s ministry of energy, with HCC and Abir Infrastructure’s consortium being separately short-listed for placing bids for the engineering, procurement and construction contract. Bhel plans to supply the electromechanical package for the project, which is valued at around Rs.1,500 crore. “We are not the concession partners but will be vendor to these private companies who have been pre-qualified,” said the Bhel executive.

Civil construction usually comprises 60% of the cost of a hydroelectric power plant and such a partnership would help Bhel share the project risk. Hydropower projects are more complex to build than thermal power plants and need specialized technology and design.

more at:
http://www.livemint.com/2011/10/13221639/Bhel-eyes-power-projects-worth.html?atype=tp

BHEL Recruits Engineers Through GATE 2012

Now you can land as an Engineer Trainee in Bharat Heavy Electricals Limited (BHEL) if you could score in the Graduate Aptitude Test for Engineers (GATE) 2012.

There are a total of 800 posts (refer below table for details), BHEL will use the scores obtained in GATE 2012 for inviting applicants for personal interview.

Please note that candidates have to apply separately for BHEL after receiving GATE 2012 admit cards. You can visit here to get information and important dates to apply for GATE 2012.

Bharat Heavy Electricals Limited (BHEL) is one of the oldest and largest state-owned engineering and manufacturing enterprise in India in the energy-related and infrastructure sector which includes Power, Railways, Transmission and Distribution, Oil and Gas sectors and many more.

more at:
http://blog.careermitra.com/2011/10/bhel-recruits-engineers-gate-2012/

Rajya Sabha member Tapan Sen seeks PM intervention in panel report on BHEL

Describing reports of Chinese power equipment being superior to those made by BHEL as "shocking", Rajya Sabha member Tapan Sen has written to Prime Minister Manmohan Singh seeking to look into the issue as it maligns a state-run entity.

Sen's recent letter comes amid articles that a Planning Commission report said that Chinese equipment is better than those manufactured by Bharat Heavy Electricals.

According to Sen, such a report is shocking and reflect deliberate "maligning and tarnishing" the image of a government-owned company by an "authority appointed by the same government".

Sen pointed out that in 75% of projects involving BHEL, the state-run company's obligations are limited to boilers, turbines and generators, which make up for 40 to 45% of total project work.

more at:
http://www.moneycontrol.com/news/wire-news/sen-seeks-pm-interventionpanel-reportbhel_595012.html

Bhel defers plan for finance firm on poor sector health

Uncertainty over policies on land acquisition and fuel allocation, and the poor financial health of state-owned electricity distributors has forced the country’s largest power equipment maker Bharat Heavy Electricals Ltd (Bhel) to defer a plan to promote a finance company that will fund power projects.

“We have postponed our finance business plans. The board wanted to take a relook (at it) in great detail,” said a top Bhel executive, who did not want to be identified.

“There are no good projects in the market. We may look at it again after we see some policy movement, which is expected at the end of the year,” added this person, explaining why the company has deferred plans to start a non-banking financial company (NBFC).

India has an installed power generation capacity of 181,000 megawatts (MW), but still faces a shortage of 9.8% during the peak hours between 5pm and 11pm. Power companies have to deal with land acquisition problems, fuel supply constraints, increasing environmental activism and the deteriorating health of state electricity boards.

more at:
http://www.livemint.com/2011/10/07001137/Bhel-defers-plan-for-finance-f.html

BHEL bags Rs 3,800 cr order from Dainik Bhaskar Power Ltd

BHEL today said it has bagged a Rs 3,800 crore order from Dainik Bhaskar Power Ltd for setting up a 1,320-MW thermal power plant in Madhya Pradesh.

"BHEL has secured a contract from an independent power producer, Dainik Bhaskar Power Limited, for setting up a 1,320-MW thermal power plant (2x660 MW) in Madhya Pradesh," the company said in a statement.

Valued at Rs 3,783 crore, the order is for Dainik Bhaskar Power Limited's (DBPL's) upcoming coal-based supercritical thermal power project in Singrauli District of Madhya Pradesh.

BHEL is presently executing another contract for DBPL, involving the supply and commissioning of a 2x600 MW (boiler, turbine and generator) BTG package, along with associated auxiliaries for a 1,200-MW coal-based thermal power project in Chhattisgarh.

BHEL's scope of work under the new contract envisages the design, engineering, manufacture, supply, erection, testing and commissioning of supercritical boilers, steam turbines and turbo-generators along with state-of-the-art controls and instrumentation (C&I) and other associated auxiliaries like transformers and a switchyard.

Out of the total orders for power plant equipment with a cumulative generation capacity of 31,560 MW received by BHEL during 2009-10 and 2010-11, orders received from independent power producers accounted for 22,369 MW.

BHEL has established the capability to deliver 15,000 MW of power equipment per annum and further augmentation of its capacity to 20,000 MW per annum is underway.

ref:
http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/engineering/bhel-bags-rs-3800-cr-order-from-dainik-bhaskar-power-ltd/articleshow/10242534.cms

BHEL in process of appointing two independent directors

The Department of Heavy Industry is in the process of appointing two more independent directors on the board of BHEL to achieve compliance with listing norms, prior to the power equipment-maker's follow-on public offer.

Bharat Heavy Electricals Ltd (BHEL) has filed draft papers with market regulator Sebi for the proposed divestment of 5 per cent (2.45 crore shares) of the government's stake in the company.

"We are in the process of appointing independent directors. Soon they will be appointed," a top government official said.

As per regulations, half of the company's board should comprise independent directors. Currently, BHEL has 13 directors, including Chairman and Managing Director B P Rao. Out of them, five are independent directors.

According to a top BHEL official, there is a shortage of two independent directors to achieve compliance with Sebi's listing norms.

In its Draft Red Herring Prospectus (DRHP), the state-run entity said it intends to be in compliance with regulatory requirements regarding composition of the board before filing the Red Herring Prospectus with the Registrar of Companies.

"Presently, our board has thirteen directors, of which five are independent directors, while Clause 49 of the Equity Listing Agreement stipulates that independent directors should comprise 50 per cent of our board," it noted.

ref:
http://economictimes.indiatimes.com/news/news-by-company/corporate-announcement/bhel-in-process-of-appointing-two-independent-directors/articleshow/10229033.cms

BHEL is facing 163 civil and criminal cases

Bharat Heavy Electricals is facing as many as 163 civil and criminal proceedings, including those related to bank guarantee and recovery of money. BHEL was facing 144 civil and 19 criminal cases, among other litigations, as on September 15. According to the company's draft document for the proposed disinvestment of 5 per cent stake by the government, the aggregate value of the 144 civil cases is estimated to be worth about Rs 145.23 crore.

"We are presently involved in 19 criminal proceedings which have been filed against us in various forums," the draft document said. "There are 144 civil proceedings against the company and the aggregate monetary value of these proceedings is approximately Rs 1,452.32 million (Rs 145.23 crore). The cases primarily relate to recovery of money, injunction suits, bank guarantees and insurance...," it added. Meanwhile, BHEL has initiated three criminal cases and 125 civil proceedings -- whose aggregate monetary value about Rs 188.39 crores.

ref:
http://www.hindustantimes.com/BHEL-is-facing-163-civil-and-criminal-cases/Article1-752673.aspx

BHEL files papers for FPO with Sebi

Notwithstanding volatile market conditions, BHEL today filed initial papers with regulator Sebi for the follow-on public offer that will see the government offloading its 5% stake in the company.
The sale of government's 5% stake in the power equipment maker is expected to fetch over Rs 4,000 crore.
Bharat Heavy Electricals Ltd (BHEL) filed papers for the FPO with Sebi today, sources said.
The government in July had appointed four merchant bankers -- Morgan Stanley, DSP Merrill Lynch (Bank of America), ICICI Securities and Kotak Mahindra Capital -- for BHEL's follow-on public offer.
Based on today's market value of Rs 80,141.77 crore, the sale of 5% stake would be worth over Rs 4,000 crore.
The proposed BHEL follow-on offer is a part of the government's ambitious Rs 40,000 crore disinvestment target for 2011-12.
With high volatility in the stock markets, there are doubts whether the target would be met. So far this fiscal, the government has been able to mop up only Rs 1,162 crore through sale of shares in Power Finance Corp.
The government on August 30 approved the disinvestment of 5% of its shareholding in BHEL. The government holds 67.72% stake in the entity.
A price discount of 5% would be given for retail investors, as part of efforts to encourage greater public ownership in Central Public Sector Enterprises, the statement said.
Ten per cent of the shares to be offered for sale through further public offer shall be reserved for the employees, who would also given a price discount of 5%.
The government has already approved disinvestment in ONGC, SAIL, HCL and NBCC.
Last fiscal, the government raised Rs 22,763 crore through sale of equity in public sector enterprises.

ref:
http://www.moneycontrol.com/news/ipo-news/bhel-files-papers-for-fposebi_592720.html

Bhel orders dry up due to policy paralysis

The uncertainty over land acquisition and policies, and the poor health of state-owned electricity distribution utilities has resulted in orders drying up for India’s largest power equipment maker— Bharat Heavy Electricals Ltd (Bhel).

The state-owned firm, which has been planning a follow-on public offer (FPO) of shares, didn’t receive any orders from power firms in the first quarter against orders worth Rs. 9,226 crore in the year earlier. It’s expecting to end the second quarter with only two orders valued at around Rs. 6,400 crore compared with Rs. 11,024 crore.

Bhel received orders worth around Rs. 46,393 crore from power companies in the last fiscal.

“We didn’t get any orders for power plant or engineering, procurement and construction in the first quarter. For the second quarter, which is yet to end, we received an order for two units of 660 megawatts (MW) each for Singareni Collieries Co. Ltd, valued at around Rs. 3,200 crore. We are also expecting another order for two units of 660MW each,” said a top Bhel executive who didn’t want to be identified.

ref:
http://www.livemint.com/2011/09/30004325/Bhel-orders-dry-up-due-to-poli.html

Govt may levy import duty on power equipment for mega projects

India is reviving a plan to scrap its mega power plant policy, imposing a 5% customs duty on the import of equipment that goes into thermal projects that will generate at least 1,000 megawatts (MW).

The government’s move is believed to be prompted by a desire to prevent the import of Chinese equipment.

To be sure, the move needs to be cleared by the cabinet and the rule will apply only to new projects with companies that have already placed orders with Chinese equipment makers being exempt.

“Tariff or custom duty exemption is only applicable for mega power projects. If this distinction is done away with, there is no difference between mega or non-mega. The imported equipment will be subjected to a 5% customs duty, 10% countervailing duty and special additional duty of 4%. There will be no distinction. Everyone will have to pay the same duty,” said a top power ministry official who did not want to be identified.

The mega power project status allows fiscal benefits to developers of thermal power plants of at least 1,000MW capacity, including a tax holiday for 10 years and a waiver from customs duty on equipment imports.

more at:
http://www.livemint.com/2011/09/28234423/Govt-may-levy-import-duty-on-p.html?h=B

BHEL pays all-time high equity dividend of 311.50% for FY11

With a final dividend payout of 179%, Bharat Heavy Electricals Limited (BHEL) has paid an equity dividend of 311.5% for fiscal 2010-11, as against 233% paid in the year before. This includes an interim dividend of 133% paid earlier. At Rs. 15,248 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. 5934 Million towards the final dividend for the year 2010-11 on the equity (67.72%) held by the Government of India, was presented here today to Mr. Praful Patel, Union Minister for Heavy Industries and Public Enterprises by Mr. B.P. Rao, Chairman and Managing Director, BHEL in the presence of Sh. S. Sundareshan, Secretary, Department of Heavy Industries and other senior officers of the Ministry of Heavy Industries and BHEL.

ref:
http://www.indiainfoline.com/Markets/News/BHEL-pays-all-time-high-equity-dividend-of-311.50-percent-for-FY11/5252850218

Bhel issue only after market improves: Praful Patel

Union Heavy Industries & Public Enterprises Minister Praful Patel today said the government is waiting for the market sentiment to improve to launch the USD one-billion follow-on public offer of Bharat Heavy Electricals (BHEL).
"In the current market situation, I don''t think the Bhel issue will go ahead. It will go ahead at the right time, when the market improves. We have given an in-principle approval, (but) that does not mean we have given the timing," Patel told reporters on the sidelines of an IEEMA (Indian Electrical & Electronics Manufacturers Association) event here.
"There is no hurry for Bhel to go for 5 percent dilution," Patel added.
The comments come on the heels of the Government calling off the over Rs 11,000-crore ONGC follow-on issue earlier this month.
The issue was to hit the markets on September 20 but the markets started crashing from the middle of the month following the renewed credit crisis in the Eurozone economies.
At the end of June, the government held 67.72 percent stake in Bhel.
The proposed share sale is part of the government''s ambitious programme to garner Rs 40,000 crore through divestment in the current fiscal.
But it has barely achieved three percent of the target through Rs 1,100 crore from divesting five percent in Power Finance Corporation in the current fiscal.

ref :
http://www.moneycontrol.com/news/wire-news/bhel-issue-only-after-market-improves-praful-patel_590851.html

BHEL FPO may happen before ONGC issue: Disinvestment Secy

In an interview to CNBC-TV18, Mohammad Haleem Khan, Disinvestment Secretary said, Oil and Natural Gas Corporation ’s follow-on public offer (FPO) will be reviewed after a fortnight.

According to him, BHEL FPO may happen before ONGC FPO. However, he said, BHEL FPO timing does not hinge on ONGC issue. "If BHEL is ready with all the procedures in place and compliances, which are required, and it is also comfortable with the market position then it can go ahead irrespective of whether ONGC is done before it or after that," he added.

Below is the edited transcript of his interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying videos.

Q: The government had set out a disinvestment target of Rs 40,000 crore, barely 3% of that has been achieved. Is the government at all confident of achieving that target or has that been completely reworked?
A: These numbers have emerged out of the budgetary exercise. When they decided to prepare budget for 2011-12, they created budgetary estimates. This Rs 40,000 crore number comes from that. Now, this process has got certain amount of sanctity. After the second quarter, there will be a revision of estimates.
When the revision of estimates takes place, they will take all things into account and decide whether the Rs 40,000 crore number is to be revisited. Otherwise, at this point of time, we are saying that Rs 40,000 crore is the target which has to be achieved by the department. Keeping in view the various options available, we will continue to work for that.

More at:
http://www.moneycontrol.com/news/ipo-upcoming-issues/bhel-fpo-may-happen-before-ongc-issue-disinvestment-secy_590447.html

Warm farewell given to BHEL GMs on retirement

In a simple programme held at BHEL administration building SS Gupta, ED, BHEL (Bhopal) bade farewell to General Manager PT Pathrabe and General Manager Umesh Singhal on attaining the superannuation age.

In the year 1974, Pathrabe joined BHEL, Bhopal as an engineer trainee, after completing his BE (Electrical Engineering) from Nagpur in 1973. During his tenure he extended his contribution in department like HPE, SYX, AME, TME and EME.

Singhal joined BHEL, Bhopal in 1975, after graduating in Mechanical engineering from Indore in 1974 and served in various departments like SWM, SCS, HSS, TAD, PMG and STS. Gupta in his address threw light on various contributions of them at various posts and prayed for their happy retired life.

ref:
http://www.dailypioneer.com/state-editions/bhopal/8928-warm-farewell-given-to-bhel-gms-on-retirement.html

Power min blames Bhel for delay in capacity addition

Power and heavy industries ministries have once again locked horns over the delays in implementing the government’s capacity addition programme. While the power ministry has put the blame squarely on Bhel for delaying equipment supplies, creating problems in commissioning projects, heavy industries ministry, which exercises control over the PSU, has washed its hand of over the allegations. The latter also suggested that power projects are delayed due to other reasons.
In a letter to heavy industries secretary S Sundereshan, power secretary P Uma Shankar has said that a few gas and coal-based based power projects, scheduled for commissioning in the final years of the 11th Plan, have overshot the targets by several months as milestones committed by Bhel during the secretary level review meetings have not been achieved. He has also expressed fear that the delay could seriously impact capacity addition programme.

more at:
http://www.financialexpress.com/news/Power-min-blames-Bhel-for-delay-in-capacity-addition/850860/

NTPC expects BHEL to match Doosan's 800MW boiler tender bid

India's largest state-owned power generating company NTPC recently opened bids for large boiler and turbine tenders, which are being valued at Rs 7,500 crore.
While the company is still evaluating all bids, its chairman and managing director Arup Roy Choudhury says that L&T is likely to be the third lowest (L3) contender.
For the 800 megawatt boiler tender, Doosan has emerged as lowest bidder, while BHEL is the second lowers bidder, Choudhury confirmed. "We expect BHEL to match the lowest bid as rates are quite competitive," he told CNBC-TV18 in an exclusive interview.
Talking about the intensifying competition among suppliers, he said this was due to increase in the number of equipment manufacturers in the market.
NTPC (formerly National Thermal Power Corporation) is likely to award boiler and turbine tenders within a month.

ref:
http://www.moneycontrol.com/news/business/ntpc-expects-bhel-to-match-doosan39s-800mw-boiler-tender-bid_588656.html

BHEL aims to commission 20,000 MW equipment this fiscal

Bharat Heavy Electricals (BHEL) today said it expects to commission over 20,000 MW equipment, which includes overseas projects, in the current fiscal.
Addressing shareholders at the annual general meeting here, BHEL Chairman and Managing Director B Prasada Rao said the company's strategy to improve execution capabilities include vendor base expansion, rate contracts and enhanced outsourcing.
"The company has set an ambitious target of commissioning over 20,000 MW comprising utilities, industrial and overseas projects during 2011-12," he said. In 2010-11, BHEL commissioned 9,442 MW of power equipment. This includes 52 sets of equipment with a combined capacity of 7,667 MW, commissioned within the country and abroad.
Noting that BHEL is on track to become a 20,000 MW company by March 2012, Rao said the company would continue expanding its offerings in new growth areas such as solar, nuclear, transportation, transmission & distribution and water.

more at:
http://www.moneycontrol.com/news/business/bhel-aims-to-commission-20000-mw-equipment-this-fiscal_588453.html

Railways may allot R26k cr projects to Bhel sans bids

Indian Railways is weighing award of contracts worth R26,000 crore to state-owned Bharat Heavy Electricals (Bhel) on a nomination basis. The move, a departure from the earlier decision to execute these projects on a public-private partnership (PPP) basis, is a breach of Central Vigilance Commission guidelines discouraging such nominations and a Supreme Court judgment in 2006 which said nomination should be only a last resort. In such awards, a company doesn’t have to compete with other firms or submit any price bid.

The contracts include setting up two factories in West Bengal. For the last 15 months, railways had been testing the projects under PPP mode.

It had shortlisted nine international engineering firms including Alstom, Bombardier, Siemens, GE, Hitachi and Hyundai-Rotem for financial bids.

ref:
http://www.financialexpress.com/news/Railways-may-allot-R26k-cr-projects-to-Bhel-sans-bids/848517/

BHEL puts up a brave face, says it is not desperate for orders

BHEL, which lost the best bidder status in a prestigious tender of NTPC, says it does not need orders at un-remunerative prices.

“We are not that desperate,” a senior official of BHEL told Business Line, soon after the news broke out, on Thursday, that BGR Energy had emerged the lowest bidder for the supply of turbine-generator sets for NTPC.

Coming on the heels of the South Korean Doosan turning out to be the lowest bidder for the supply of boilers for the same projects of NTPC, the question is “what has happened to BHEL?”

For sure, regardless of its ranking among the bidders, BHEL will get orders for four boilers and two turbine-generators, for the nine supercritical thermal plants of NTPC, of 800 MW each, spread over four locations. With orders on hand worth Rs 1.6 lakh crore, BHEL is indeed not desperate for work, unlike its competitors.


ref:
http://www.thehindubusinessline.com/companies/article2465215.ece

BHEL bags Rs 2500-3000 crore order: Report

Bharat Heavy Electrical Ltd has bagged an order worth Rs 2500-3000 crore from Singareni Collieries, ET Now reports.

Singareni Collieries Company Ltd, a state-owned mining company, on 12th September approved the order to supply two 600 MW boiler turbine generators, according to sources. BHEL will soon release an official confirmation of the order.

BHEL has reported a total order inflow of Rs 60,476 crore for FY2011 (up 2.4% YoY), finishing the year with a total order backlog of Rs 164,130 crore. For the last quarter the company was only able to declare an order inflow of 4000-5000 cr and hence an additional order worth Rs 3000 cr would boost investor sentiment.

Earlier in the week, ET Now reported that bidding for NTPC's Rs 18,000-cr project for the bulk supply of 800 mw supercritical equipment was expected to open today. L&T, BHEL, Bharat Forge, JSW, BGR Energy, Thermax and Doosan have participated in the bidding.

Analsyts expect BHEL to be winning minimum 4 sets (4x800 mw) from NTPC's Rs 18000 cr order pipeline.

The shares of the company closed 1.4% higher at Rs 1727. The stock has hit a high of Rs 1741.95 in the intra day trade on the BSE today.

ref:
http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/engineering/bhel-bags-rs-2500-3000-crore-order-report/articleshow/9982036.cms

U.N. Singh takes over as GM in-charge at BHEL's Industrial Systems Group

Mr U.N.Singh has taken over as the General Manager in-charge of BHEL's Industrial Systems Group (ISG), Bangalore, a unit of BHEL which handles bulk material handling systems like coal and ash handling systems for power plants and steel plant automation .

Previous roles
Mr Singh has served BHEL in various capacities at the unit since 1978 and has been responsible for securing a number of direct orders for Material Handling System for BHEL.

He has also spearheaded the execution of number of projects of Coal and Ash Handling systems as well as automation of Steel plants, a press statement said.

Expert committee on energy
He is also a member on the expert committee on energy at Bangalore Chamber of Industry and Commerce (BCIC).

Ref:
http://www.thehindubusinessline.com/companies/article2436548.ece

BHEL bags Rs 1395 crore contract from MMDC

BHEL on Monday said it bagged Rs 1,395 crore contract from the country's biggest miner NMDC for handling raw material at its steel plant at Nagarnar in Chhattisgarh.

BHEL will set up the Raw Material Handling System (RMHS) package for NMDC's three million tonnes per annum steel plant at Nagarnar in Chhattisgarh, on turnkey basis, the power equipment maker said in a statement.

The contract was signed in the presence of BHEL CMD B P Rao and NMDC CMD Rana Som.

The project includes Engineering, Procurement and Construction of complete RMHS, from receipt of various raw material (coal, iron ore etc) from wagon tippling to crushing.The order envisages installation of conveyor length of nearly 30 kms.

The government has recently approved disinvestment of five per cent of its stake in BHEL, which could fetch about Rs. 4,320 crore. The government holds 67.72 per cent in BHEL.

In 2010-11, the company recorded a turnover of Rs. 43,337 crore and profit after tax

ref:
http://profit.ndtv.com/news/show/bhel-bags-rs-1-395-crore-contract-from-nmdc-175925

NMDC, BHEL sign pact for raw material handling system

NMDC has signed a contract for Raw Material Handling System Package for the upcoming 3 MTPA Integrated Steel Plant at Nagarnar, with BHEL on Saturday.

Mr. G. Viswakarma, ED (Steel Plant) on behalf of NMDC and Mr. U.N. Singh GM, for BHEL signed Contract Agreement in presence of Mr Rana Som, CMD, NMDC and Mr B.P.Rao, CMD, BHEL and other dignitaries.

Mr. Rana Som said the proposed 3 MTPA steel plant would be the fastest moving steel plant project among all green field or brown field projects in the country.

Mr. B.P.Rao, CMD, BHEL said that BHEL’s group at Bangalore was fully geared up to complete this challenging job well within the stipulated time of 30 months.

The Raw Material Handling System will be handling @ 10 MT/year of raw material catering to the different units of the NMDC Steel Plant.

ref:
http://www.thehindubusinessline.com/companies/article2421165.ece

Generators worth Rs. 5 crore gutted in BHEL fire

Property worth Rs. 5 crore nearly has been gutted in the fire mishap at Bharat Heavy Electricals Limited (BHEL) in Ramachandrapuram on Friday, according to preliminary estimates.
However, there were no casualties reported.
The mishap occurred in the second block of the factory where generators are manufactured.
According to inspector of factories K Srinvasa Rao, the electronic testing equipment caught fire suddenly around 8.30 a.m, sometime after the first shift began.
Soon it spread and gutted all the generators in the place.
About six fire fighting squads from the ordnance factory, BDL and Patancheru rushed to BHEL to douse the fire.
The management maintained the mishap occurred due to short circuit and estimated the loss to be between ` 3 and 5 crore.

ref:
http://ibnlive.in.com/news/generators-worth-rs-5-crore-gutted-in-bhel-fire/180933-60-114.html

Fire in BHEL, employees safe

A fire broke out in Bharat Heavy Electricals Limited (BHEL), Ramachandrapuram near here on Friday. However, no one was injured.

According to sources, the loss would be between Rs.2 crore to Rs.3 crore though a formal assessment was yet to be done. Officials claimed that a short circuit caused the fire, but sources in the BHEL said the fire was sparked off during welding work and spread to the workshop soon. According to K. Srinivasa Rao, Inspector of Factories, six fire engines from Patancheru, Bharat Dynamics Limited and Ordinance Factory were pressed into service to douse the fire. It took about an hour to bring it under control.

A press release issued by BHEL, however, described it as a ‘minor' fire.

ref:
http://www.thehindu.com/news/states/andhra-pradesh/article2419097.ece

India cabinet approves 5 pct govt stake sale in BHEL

India's federal cabinet on Tuesday approved a plan to sell 5 percent of the government's stake in power gear maker Bharat Heavy Electricals (BHEL) , the government said in a statement.

The government will sell 5 percent of its 67.7 percent holding in BHEL through a follow-on public share offering. At current prices, the stake is valued at about $940 million.

The stake sale is part of the government's plan to raise 400 billion rupees ($8.7 billion) through stake sales in state-run firms in the current fiscal year to March 2012.

BHEL has shortlisted Bank of America Merrill Lynch , Morgan Stanley and two Indian banks to manage the share sale, sources with knowledge of the situation told Reuters last month. ($1=46.1 Indian rupees)

ref:
http://www.reuters.com/article/2011/08/30/bhel-sharesale-idUSL5E7JU25P20110830

CCEA to take up BHEL FPO on Tuesday

The Cabinet Committee of Economic Affairs (CCEA) will take up follow-on-public offer of BHEL for discussion on Tuesday.

The sale of 5% stake in power equipment maker BHEL is expected to mop up over USD 1 billion (about Rs 4,700 crore) for the government. The government has appointed four merchant bankers -- Morgan Stanley, DSP Merrill Lynch (Bank of America), ICICI Securities and Kotak Mahindra Capital -- for BHEL's follow-on public offer.

The proposed share sale in Bharat Heavy Electricals Ltd (BHEL) is part of government's ambitious programme to garner Rs 40,000 crore through disinvestment in the current fiscal.

At the end of June quarter, the government held 67.72% stake in BHEL. The government has mopped up more than Rs 1,100 crore by divesting 5% equity in Power Finance Corporation (PFC) in the current fiscal.


ref:
http://www.moneycontrol.com/news/ipo-upcoming-issues/ccea-to-takebhel-fpotuesday_581103.html

MP govt initiates inquiry into chlorine leakage at BHEL

Madhya Pradesh Government has set up an inquiry into Monday night's chlorine leakage at the Bharat Heavy Electricals Limited's water treatment plant. Commissioner, Bhopal civic corporation, had been asked to conduct an inquiry and furnish a report within 15 days, an official release said today. The investigation will cover five points. Under the first point, the information about the circumstances, background and the actual incident of August 22 will be collected. It will be also probed whether BHEL administration made any safety arrangement and efforts to control the leakage of gas. The third point is role of officers and employees responsible for the occurrence, while other subjects related to the incident will be included in fourth point. The fifth point will seek suggestions to avoid such incidents in future. Over thirty persons had complained of irritation in the eyes following leakage of gas from the water filtration plant of BHEL, situated on the Arera Hills, near the Madhya Pradesh Assembly building.

http://ibnlive.in.com/generalnewsfeed/news/mp-govt-initiates-inquiry-into-chlorine-leakage-at-bhel/798956.html

Chlorine gas leaks from BHEL plant in Bhopal; 3 hospitalised

Panic gripped Birla Mandir area here on Monday following leakage of chlorine gas from the water filtration plant of BHEL facility here.

Three persons reported irritation in their eyes following the leakage from the plant situated near the Madhya Pradesh Assembly, Bhopal Collector Nikunj Shrivastava said.

They are undergoing treatment at the Jai Prakash Hospital here, he said.

The situation is under control and efforts are on to plug the gas leakage, Shrivastava said. Police, fire brigade personnel and district administration officials have reached the spot.

Government-run BHEL's facility in Bhopal manufactures a wide range of electrical equipment.

ref:
http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/engineering/chlorine-gas-leaks-from-bhel-plant-in-bhopal-3-hospitalised/articleshow/9700652.cms

Sinohydro rejects Bhel, prefers Alstom for Zambia project

China’s Sinohydro Corp. has rejected Bharat Heavy Electricals Ltd’s (Bhel’s) request to be the supplier of the electromechanical package order for the 120 megawatts (MW) Itezhi Tezhi hydropower project in Zambia.

This is a double blow for the Indian government, which had offered a $50 million credit line for part-funding of the project under the assumption that the contract for the engineering, procurement and construction (EPC) would go to Bhel. Not only did this not happen, the Chinese firm has rejected Bhel’s request to be included as a supplier.

A miffed Bhel executive, who did not want to be named, said: “The electromechanical package order has gone to Alstom India, which is not even qualified to quote as per the terms of line of credit.”

more at:
http://www.livemint.com/2011/08/22223706/Sinohydro-rejects-Bhel-prefer.html?atype=tp

BHEL aims Rs 24k-cr networth in FY12, eyes Maharatna status

BHEL is aiming to achieve a networth of Rs 23,755 crore this fiscal as it will brighten the company's prospects of getting the coveted Maharatna status.

BHEL has set a target of reaching the networth of Rs 23,755 crore in FY12, according to the Memorandum of Understanding (MoU) it has signed with the Ministry of Heavy Industries and Public Enterprises.

Once the target is realised, the PSU would have an average networth of over Rs 15,000 crore for three straight financial years -- one of the criteria needed for the Maharatna status.
Even as the company has set a goal for qualifying for the coveted status given to PSUs, the government is considering to grant it the Maharatna tag soon with a condition that it would meet the criteria within this fiscal, sources said.

The government is also planning to offload 5% of its stake in BHEL through a follow-on public offer that could fetch the exchequer about Rs 4,700 crore.


more at:
http://www.business-standard.com/india/news/bhel-aims-rs-24k-cr-networth-in-fy12-eyes-maharatna-status/144943/on

BHEL, Nalco may become divestment cases for FY’11-12

Bharat Heavy Electricals Limited (BHEL) and National Aluminium Company Ltd (Nalco) could come up for disinvestment this financial year. Proposals from them for divestment are at various stages. Once the process is gone through, they will be able to seek Government approval, the Finance Minister, Mr Pranab Mukherjee informed the Lok Sabha on Friday.

In the case of BHEL, the divestment proposal could be for 5 per cent stake sale. For Nalco, the Centre may look at 10 percent divestment.

The Centre has already approved divestment in ONGC, SAIL, Hindustan Copper Ltd and National Building and Construction Corporation (NBCC). For 2011-12, the Centre had budgeted divestment receipts of Rs 40,000 crore. In the current financial year, the Government has till date mopped up Rs 1,144.55 crore, being the divestment receipts from 5 percent stake sale in Power Finance Corporation (PFC).

ref:
http://www.thehindubusinessline.com/companies/article2373551.ece?homepage=true

NTPC to stop bulk tendering for equipment

In an attempt to create a level playing field for all power generation equipment manufacturers in the country, state-run NTPC Ltd plans to opt out of the current practice of bulk tendering that includes conditions, which assures orders go to another state-owned firm Bharat Heavy Electricals Ltd (Bhel).

This assumes significance given the plans of India’s largest power generation utility.

NTPC currently has a power generation capacity of 34,854 megawatts (MW) and has projects totalling 14,088MW under construction. Equipment for 16,192MW is under the tendering process, with the firm targeting an installed capacity of 75,000MW by 2017 and 128,000MW by 2032. NTPC plans to award orders for equipment meant to generate 40,000MW during the 12th Plan (2013-17) for value of about Rs.2 trillion.

more at:
http://www.livemint.com/2011/08/17224849/NTPC-to-stop-bulk-tendering-fo.html?atype=tp

Chinese equipment less efficient than supplied by BHEL: Government

Amid a raging debate over the quality of power equipment from BHEL and Chinese companies, the government on Thursday said Chinese gears are of lesser efficiency compared to those supplied by the PSU.

"Power plants set up with Chinese equipment have not shown better performance than those using equipment supplied by Bharat Heavy Electricals Ltd (BHEL)," Minister of Heavy Industries and Public Enterprises Praful Patel said in a written reply to Lok Sabha.

He was responding to a question on whether power plants running on Chinese gear have shown better performance than those using BHEL equipment.

"In fact, Chinese supplied equipment have inferior heat rates (efficiencies) and the auxiliaries consume more power than that of BHEL. Secondary fuel oil consumption is also more."

"The time taken for synchronisation to commercial operation is much more than BHEL equipment," Patel said.

According to him, the average Plant Load Factor (PLF) for the last three years of Chinese units is as low as 68 per cent as compared to BHEL's 79 per cent.

more at:
http://articles.economictimes.indiatimes.com/2011-08-11/news/29876565_1_chinese-equipment-bhel-equipment-bhel-units

BHEL Can Meet Requirement for Supply of Reactors : Praful Patel

Minister of Heavy Industries and Public Enterprises Shri Praful Patel said that Bharat Heavy Electricals Limited (BHEL) can meet the requirement of the country of reactors for the atomic power projects being developed by Nuclear Power Corporation of India Ltd (NPCIL) with indigenous reactor technology.

BHEL has manufactured and supplied certain Nuclear Reactor components like Steam Generators, Reactor Headers, end shields to NPCIL for their 220 MWe and 540 MWe reactors based on Pressurized Heavy Water Reactor (PHWR) Technology.
BHEL can consider supplying reactors for Atomic Power projects based on indigenous reactor technology if NPCIL gives complete technical know-how since the indigenous reactor technology is developed by NPCIL.

NPCIL has developed designs for indigenous reactors for their 220 MWe, 540 MWe and 700 MWe ratings Nuclear Power Pants based on Pressurized Heavy water Reactor (PHWR) technology. As per NPCIL Programme, around 20 Units of 700 MWe have been planned, out of which 4 units are under construction. BHEL is supplying Steam Generators for 2 units and Reactor Header assembly for 4 units.

more at:
http://machinist.in/index.php?option=com_content&task=view&id=3626&Itemid=2

Political turmoil in Africa, West Asia worries Bhel

Bharat Heavy Electricals Ltd (Bhel), India’s largest manufacturer of power generation equipment, fears that political unrest in West Asia and North Africa will hurt overseas orders at a time when its share of the domestic market is also shrinking.

“The orders are slowing down,” said a senior Bhel executive, asking not to be identified. “There will be some impact as they (West Asian and North African nations) are not making fresh investments. However, going forward, whenever there is peace, they will push forward their economic agenda.”

Pro-democracy protests have spread from Tunisia to Egypt, Libya, Algeria, Syria, Jordan, Yemen, Oman and Bahrain since December, throwing business in turmoil. Limited protests have also taken place in Saudi Arabia. All these countries are ruled by monarchies or military dictatorships. West Asia, Africa and Central Asia are Bhel’s main international markets.

more at:
http://www.livemint.com/2011/08/08212024/Political-turmoil-in-Africa-W.html?atype=tp

BHEL assures timely supply of equipment to Tata Powers' UMPP

Amid concerns of delay on its part, state-run BHEL, which is supplying equipment for the 4,000 MW Mundra ultra mega power project being constructed by Tata Power, has said that the contract would be executed as per schedule.

Cumulatively valued at Rs 240 crore, the orders were placed on BHEL by Coastal Gujarat Power Ltd, a Tata Power company for their upcoming 4,000 MW (5x800 MW) UMPP at Mundra in Gujarat.

The contract for 40 transformers for Mundra ultra mega power project being executed by BHEL is on track, sources said.

Sources confirmed that although the contract is sizable in terms of the number of transformers to be supplied, yet in percentage terms, it amounts to a minuscule 0.8 per cent of the project.

Company officials confirmed that while all 24 power transformers and nine generator transformers have already been supplied, the balance are being supplied in sync with the project milestones.

Tata Power in a communique to the power ministry had said that the last three 800 MW each units of its Mundra project may get delayed due to delay in supply of power equipment by BHEL.

BHEL mulling manufacturing facility in Maharashtra

BHEL is contemplating setting up a manufacturing facility in Latur in Maharashtra, a senior company official said on Friday.

"The Maharashtra government has evinced interest to offer adequate land for the project. The product would be something allied to thermal power generation," Executive Director of BHEL (Tiruchy complex) A V Krishnan said.

He said BHEL Board was yet to decide on the exact product range, size and investment for the new project, which he indicated would come under the jurisdiction of BHEL here.

BHEL complex comprises of high pressure boiler plant and seamless steel tube plant in Tiruchirappalli, piping centre in Chennai and industrial valve plant at Goindwal in Punjab.

Besides the manufacturing facility in Maharashtra, discussions were on with Maharashtra Power Generation Corporation to install a 660 mw thermal power station in the state, Krishnan added.

BHEL is also planning to set up a two mw solar power generating plant in its complex here at a cost of Rs 17 crore, he said.

ref:
http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/engineering/bhel-mulling-manufacturing-facility-in-maharashtra/articleshow/9495328.cms

Chinese banks offer cheap yuan loans to finance more than $50-bn Indian orders for power equipment, pose threat to BHEL, L&T, Thermax

Chinese banks have offered yuan loans to finance more than $50 billion of power equipment for Indian firms at lower interest rates, giving a shot in the arm to credit-starved power companies but posing a serious threat to Indian suppliers such as BHEL and L&T.

Chinese lenders have approached the government for accepting renminbi as a currency for external commercial borrowing by Indian power firms. Private power firms said direct overseas borrowings are restricted to a few currencies such as the US and Australian dollars, yen and euro.

Indian power firms are strongly backing the Chinese move as they are struggling to finance projects after local interest rates rose to 13% from 9% in the past two years. Loans from Beijing would be available at least 200-300 basis points lower than rupee debt, making a substantial difference for projects as costs run into thousands of crores of rupees.

Local suppliers are feeling threatened by rising imports of Chinese equipment. Orders for 80,000 mw of equipment have been placed with Chinese companies. Cheap Chinese loans will fatten the order books of companies like Shanghai Electric Corp, SEPCO Electric Power, Dong Fang and Harbin, which have large capacities to meet the demand in China that generates 800,000 mw and is adding 100,000 mw of new capacity every year. India has a capacity of 170,000 mw.

ref:
http://economictimes.indiatimes.com/news/news-by-industry/energy/power/chinese-banks-offer-cheap-yuan-loans-to-finance-more-than-50-bn-indian-orders-for-power-equipment-pose-threat-to-bhel-lt-thermax/articleshow/9486851.cms

BHEL Recruitment 2011

Bharat Heavy Electricals Limited (BHEL), New delhi, is inviting applications to recruit eligible candidates for the posts of engineer trainee, supervisor trainee and assistant officer in various disciplines. There are a total of 2357 vacancies.

Online registration begins August 1, 2011 and last date to apply online is August 20, 2011. One may apply online at http://careers.bhel.in/bhel/jsp/index.jsp

Selection process will consist of a written test followed by a personal interview. The written test papers will be objective type in nature and will be bilingual - in Hindi and English.

The application fee is Rs 500 for engieer trainee and Rs 300 for supervisor trainee to be paid at SBI throughout the country by prescribed challan only. (SC/ST/PH candidates are exempted from the fee).


ref:
http://indiatoday.intoday.in/site/story/bhel-recruitment-2011/1/146799.html

BHEL sees rise in orders for nuke projects based on indigenous reactor technology

Bharat Heavy Electricals Ltd expects a possible increase in orders for atomic power projects based on the indigenous reactor technology than what was originally envisaged.

This comes amid anticipated delays in the setting up of projects based on imported reactor technologies, forcing the Government to scale up its mainstay PHWR (pressurised heavy water reactor) technology in order to get anywhere close to reaching its target of 20,000 MW by 2020.

The state owned equipment major, which is in advanced stages of rolling out a venture with Nuclear Power Corporation and French major Alstom for executing the conventional island portion (or the non reactor part) of upcoming indigenous technology based projects, sees itself well placed for the emerging opportunity.

Mr BP Rao CMD of BHEL said that “We (the venture with NPCIL and Alstom) have got orders for two units… There are indications now that we could go beyond the total of eight units expected earlier as there could be delays in (projects based on) the imported technologies. BHEL is well placed for the opportunity.” In view of the emerging prospects in the nuclear business, BHEL is ramping up its capacity further at its Bhopal facility.

more at:
http://www.steelguru.com/indian_news/BHEL_sees_rise_in_orders_for_nuke_projects_based_on_indigenous_reactor_technology/217400.html

BHEL book closure dates' revision stumps traders

The sudden revision inbook closure dates of BHEL shocked many traders as the unexpected move caused many of them a loss ofdividend and also the cost of carry that they paid to extend their futures positions in the stock.

While the public sector heavy engineering major had decided to hold the book closure between September 6 and 20, according to the earlier schedule, traders prefer to carry forward their positions to August, instead of converting them in cash which would have made them eligible for dividend.

Their calculations, however, went wrong with Bhel's decision to advance the book closure dates to between August 12 and 19, said a dealer. The move upset calculations of traders as it was announced just a few days before the expiry of July contracts on Thursday as by then they had already carried forward their positions.

Those who have rolled over their positions will lose out on the final dividend of 17.9 that Bhel has announced for 2010-11, said the dealer. Bhel shares rose 1.2% to 1,847 on Thursday.

ref:
http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/bhel-book-closure-dates-revision-stumps-traders/articleshow/9403133.cms

BHEL: Rising costs to hurt fresh order inflows

Registering a modest 10% year-on-year growth in the topline for the first quarter FY12, BHEL's revenue growth has fallen way short of expectations, despite a healthy order book. The YoY sales growth for Q1 FY12 is, in fact, the lowest since Q1 FY05. Logistical issues are being cited as one of the key reasons for this shortfall in revenue.

The closure of JNPT for facility upgradation for more than a month, resulting in equipment export and import delays, appears to have impacted the Q1 revenues by about Rs 600-700 crore.

Apart from revenue growth, a slump in freshorder inflows during the quarter has also raised concerns among investors leading to a sharp dip in the stock price of the company, which is currently trading below Rs 1,900 per share.

The company has an order backlog of Rs 1,59,600 crore as on June 30, 2011 vis-a-vis its order book position of over 1,64,000 a quarter ago. While even with the current backlog, the company is comfortably placed having revenue visibility for at least three years. Further slippages in the order inflows can significantly impact its performance in the near future.

more at:
http://economictimes.indiatimes.com/news/news-by-company/earnings/earnings-analysis-/bhel-rising-costs-to-hurt-fresh-order-inflows/articleshow/9390348.cms

BHEL seeks to work with developers of hydro power plant in Zambia

Zambia’s efforts to revitalize the economy through undertaking various developmental projects has continued to attract many foreign investors across the globe with the latest being India’s Bharat Heavy Electricals Limited which seeks to partner with Chinese companies in building an additional hydro power plant and boost power generation.

The Indian company, plans to team up with China’s leading company, Sinohydro Corporation through supply of electromechanical equipment for the development of 120 megawatts hydropower project in Zambia.

The Indian company stated that for the hydropower project in Zambia, India has offered USD 50 million line of credit. In January 2010, the Export Import Bank of India signed an agreement with the Zambian government to extend USD 50 million line of credit for the Itezhi Tezhi project worth USD 200 million. While extending the line of credit the Indian government said that through its line of credit 75% of the equipment purchased must be sourced from India.

more at:
http://www.steelguru.com/metals_news/BHEL_seeks_to_work_with_developers_of_hydro_power_plant_in_Zambia/216811.html

Bhel’s June quarter results lead to derating

Bharat Heavy Electricals Ltd (Bhel), one of the bellwether stocks in the capital goods sector, has reported dismal results for the June quarter. At the end of the March quarter, the company seemed to be sitting pretty with an order book of Rs. 1.64 trillion, or close to four times its annual revenue. The firm had also told analysts that it expects revenue to grow 20% in the current fiscal year, which had then seemed to be an easily achievable task.

In that backdrop, analysts tracking the firm had estimated revenue growth of 20-26% in the June quarter. Instead, Bhel reported a year-on-year growth of 10%. Clearly, the rate at which the company executed orders in the March quarter is a matter of concern.

But the bigger worry is the rate at which it is winning orders. Order inflows last quarter stood at merely Rs. 2,400 crore, according to an analyst who attended the company’s “by invitation only” post-earnings conference call. Bhel’s order book, in fact, fell marginally to Rs. 1.6 trillion, compared with the March quarter.

more at:
http://www.livemint.com/2011/07/26222807/Bhel8217s-June-quarter-resu.html

BHEL Q1 net profit up 22% at Rs 815 cr

State-run BHEL has reported a jump of 22% (YoY) in its first quarter FY12 net profit. In the April-June quarter, company's net profit increased to Rs 815 crore against Rs 667.7 crore in same quarter the previous fiscal year.

Net sales were up 10% to Rs 7,190 crore from Rs 6,479.7 crore year-on-year.

CNBC-TV18 poll saw net sales of Rs 7,954.36 crore and net profit of Rs 857.90 crore.

Raw material cost in the first quarter increased 16% to Rs 4,581 crore while employee costs fell 3% to Rs 1301 crore year-on-year.

Depreciation cost jumped quite sharply by 35% (YoY) to Rs 171 crore. Other income went up to Rs 249 crore from Rs 163 crore during the same period.

Segment performance

Revenues from power division rose 7% to Rs 5,780 crore while EBIT was down 11% to Rs 952 crore.

Industry revenues went up 12% to Rs 1,653 crore and EBIT shot up 1.19 times to Rs 373 crore.

There was a complete lull in the order inflow during the quarter. Order book at the end of Q1FY12 stood at Rs 1,59,600 crore against Rs 1,64,100 crore at the end of Q4FY12.

ref:
http://www.moneycontrol.com/news/brokerage-results-estimates/bhel-q1-net-profit22-at-rs-815-cr_569093.html

BHEL starts usance LC for private sector power plant equipment orders

Bharat Heavy Electricals has introduced a payment mode specifically targeted at private power project developers.

The newly introduced Usance letter of credit allows project developers a grace period for payment to BHEL against equipment orders.

The new payment term offers better comfort to private players, who have been responsible for boosting BHEL’s order books in the last couple of years and are scheduled to execute well over half the projects slated to come up in the next Five Year period (Twelfth Plan). The move is being seen a counter to Chinese equipment suppliers, who have an advantage in terms of offering payment support to customers through low cost China EXIM funding.

Mr BP Rao CMD of BHEL told Business Line that “We have introduced the Usance LC which offers better comfort to project developers. There`s been a positive response from the industry.”

ref:
http://www.steelguru.com/indian_news/BHEL_starts_usance_LC_for_private_sector_power_plant_equipment_orders/216362.html

Bhel seeks to join Chinese firm for 120MW Zambian project

Bharat Heavy Electricals Ltd (Bhel) wants to supply electromechanical equipment to China’s Sinohydro Corp. for a 120 megawatts (MW) hydropower project in Zambia for which India has offered a $50 million (Rs222 crore today) line of credit.

“Since this project is part funded by the government of India and we are a government of India enterprise meeting all criteria for award of any order under the government line of credit, we would like to be considered for this supply,” Bhel said in an email to Sinohydro on 15 June. Mint has reviewed the email.

“We had written to the ministry of external affairs about the Zambian project going to the Chinese firm...we have approached Sinohydro to supply electromechanical equipment for the project valued at $50 million a month back,” said a Bhel executive, asking not to be named.

“We are still pursuing the issue with Sinohydro,” said another Bhel executive, requesting anonymity.

more at:
http://www.livemint.com/2011/07/21221720/Bhel-seeks-to-join-Chinese-fir.html?h=B

BHEL mulls shipping boilers

Bharat Heavy Electricals Ltd (BHEL) Thursday said it is looking at multi-modal transport options, including coastal shipping, to reduce the delivery time of boilers from its Tiruchirapalli unit in Tamil Nadu.

The company is in talks with Karaikal Port, in the union territory of Puducherry, to carry its equipment by sea and also with Indian Railways.

'We are using Karaikal Port for our export shipments. Similarly, we are exploring the options of carrying our boilers and related equipments on ships. As per our plan, we will unload our cargo at Karaikal Port and the port authorities will take care of loading and onward shipment and unloading at the destination,' the firm's executive director A.V. Krishnan told reporters here.

Tiruchirapalli is around 320 km from Chennai.

According to him, BHEL is executing projects in the eastern region and would like to ship its heavy boilers and other items to Paradip (Orissa) or Haldia (West Bengal) ports.

Already, the power company has shipped equipments for a 4x125 MW gas based power project in Tripura through Bangladesh.


more at:
http://news.in.msn.com/business/article.aspx?cp-documentid=5307568

HUL, BHEL in Forbes ten most innovative firms of the world

Two Indian companies Hindustan Unilever (HUL) and Bharat Heavy Electricals (BHEL) have featured in the ten most innovative companies in the world by the US magazine Forbes' latest edition. While the fast moving consumer goods giant is placed at the sixth position ahead of Google, BHEL is ranked ninth in the list, which is topped by US-based IT service provider Salesforce.com.

The magazine said the list is based on a study by Harvard Business School professor Clayton M Christensen, Jeff Dyer, professor at Brigham Young University, and Hal B Gregersen, professor of leadership at INSEAD.

Online retail firm Amazon has been placed at the second position with Intuitive Surgical in third, while Apple and Google ranked fifth and seventh respectively in the list.

"Our method relies on investors—voting with their wallets—to identify the companies they expect to be innovative today and in the future. Among them are familiar ground breakers like Amazon, Apple and Google," according to the study which is published in Forbes latest edition.

more at:
http://www.hindustantimes.com/HUL-Bhel-in-Forbes-ten-most-innovative-firms-of-the-world/Article1-723756.aspx

BHEL shortlists Bank of America Merrill Lynch, Morgan Stanley, Kotak Mahindra and ICICI Securities for share sale

Bharat Heavy Electricals has shortlisted Bank of America Merrill Lynch , Morgan Stanley and two Indian banks to manage its share sale valued at about $1 billion, sources with knowledge of the situation said.

The state-run top power gear maker has also shortlisted Kotak Mahindra and ICICI Securities , a unit of India's No. 2 lender ICICI Bank , for bookrunning the share sale, three sources said on Tuesday.

The sources declined to be named as the information was not public yet.

The Indian government plans to sell 5 percent of its stake in BHEL through the follow-on public share offering, the timing of which is yet to be decided. At current market price, the stake is valued at about $1 billion.

ref:
http://economictimes.indiatimes.com/markets/ipos/fpos/rights-issues/bhel-shortlists-bank-of-america-merrill-lynch-morgan-stanley-kotak-mahindra-and-icici-securities-for-share-sale/articleshow/9286921.cms

BHEL bags three ICWAI awards

Bharat Heavy Electricals Ltd today said it has bagged three ICWAI national awards for excellence in cost management.

Instituted by the Institute of Cost and Works Accountants of India (ICWAI), the awards recognise companies for their excellence in cost management and cost management practices.

BHEL’s units at Tiruchi, Ranipet and Jhansi have been selected for the 2010 ICWAI awards in various categories.

In a statement, BHEL said it has been “conferred the maximum number of ICWAI national awards for excellence in cost management, among public and private sector companies.”

BHEL’s net profit jumped 39 per cent to Rs 6,011 crore in 2010-11 vis-a-vis the previous year. The entity’s turnover stood at Rs 43,337 crore in the 2009-10 fiscal.

“Prudent cost management practices across the company have enabled BHEL to reduce material cost by a significant 5.22 per cent in the year 2010-11. In addition, staff costs have been curtailed to the tune of 2.6 per cent during the year,” it added.

ref:
http://www.thehindubusinessline.com/companies/article2256276.ece

Nine merchant bankers make presentations for BHEL FPO

Nine shortlisted merchant bankers, including ICICI Securities, Kotak Mahindra Capital and IDBI Capital, are understood to have made presentations before the government today for the proposed follow-on public offer (FPO) of power equipment maker BHEL .

The government is expected to raise over USD 1 billion (about Rs 4,700 crore) by offloading five per cent of its stake in state-run BHEL.

Sources said that nine merchant bankers today made separate presentations before the government for BHEL's follow-on public offer today.

The choice of merchant bankers is likely to be finalised tomorrow, sources added.

Of the 17 merchant bankers shortlisted for BHEL's proposed FPO, nine were to make presentations today, the Department of Disinvestment had said last week.

more at:
http://www.moneycontrol.com/news/ipo-news/nine-merchant-bankers-make-presentations-for-bhel-fpo_566541.html

BHEL commissions country’s first 525 MW set at Maithon thermal project

Bharat Heavy Electricals Ltd has announced the successful commissioning of the country's first thermal set of 525 MW rating at Maithon Right Bank Thermal Power Project in Jharkhand.

BHEL had won the order for the 2x525 MW greenfield power project outbidding a leading Chinese equipment supplier under an international competitive bidding process from Maithon Power Ltd (MPL).

MPL is a joint venture company of Tata Power and Damodar Valley Corporation (DVC).

This was the first order secured by BHEL for the new rating units of 525 MW. Subsequently, BHEL has secured orders for four more such units, taking the number of 525 MW sets contracted to six so far, the company said in a statement.

ref:
http://www.thehindubusinessline.com/companies/article2237824.ece

BHEL bets on Chinese inputs to beat cost squeeze

Bharat Heavy Electricals Ltd (BHEL) is looking to actively increase its vendor base in China in order to competitively source specialised inputs needed for its Indian units, a top company official told Business Line during a recent interaction.

Amid a sharp increase in the commodity cycle, this is one of the key strategies the engineering major hopes to deploy extensively to check rising material costs, BHEL's Chairman and Managing Director, Mr B.P. Rao, said.

“There are some clear advantages in sourcing products from China, provided the quality aspects are strictly adhered to. We are looking to increase our source base there, especially for materials such as castings and forgings, as well as specialised products such as P91 and P92 steels,” Mr Rao said.

‘P91' and ‘P92' steels find use in pipelines and power unit components that are part of conventional boilers on account of their high strength at elevated temperatures.

BHEL has deputed marketing and sourcing personnel at its newly established China office who would facilitate the procurement of raw materials. The options in the long term include enabling the company to order power generating parts when they see potential for procuring for another project.


more at:
http://www.thehindubusinessline.com/companies/article2233608.ece?homepage=true

BHEL - Q1 results on July 26, 2011

Bharat Heavy Electricals Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on July 26, 2011, inter alia, to consider and take on record the Unaudited Financial Results of BHEL for the quarter ended on June 30, 2011 (Q1).

ref:
http://www.moneycontrol.com/stocks/stock_market/corp_notices.php?autono=454459

Bhel to build 3 power plants on land for 2 in West Bengal

West Bengal's power generator is tweaking layout plans for two of its under-construction units to accommodate another plant at the same site following the Mamata Banerjee government's reluctance to buy fresh land for projects.

"Given the rate at which power demand is rising in West Bengal, the state needs to add additional units. With land acquisition an issue, we will try to accommodate as much as we can on our existing land," said a state power ministry official.

Accordingly, the management of state-owned West Bengal Power Development Corporation has asked Bhel, which is installing the units, to plan for another 500-MW unit at the same location.

The corporation is setting up two 500MW units at Sagardighi in Murshidabad district. It gave Bhel the contract for setting up the twin units, which are expected to start commercial generation by early 2014. Another state power department official said, "We wanted to make optimal use of the land.

more at:
http://economictimes.indiatimes.com/news/news-by-industry/energy/power/bhel-to-build-3-power-plants-on-land-for-2-in-west-bengal/articleshow/9241426.cms

China power gear better than Bhel’s

Amid demand from domestic industry for duty barriers against power equipment imports from China, the Planning Commission has said plants set up with Chinese gear have shown better performance than those using items supplied by state-run Bhel.

The panel's report card on the power sector's performance so far in the 2007-12 Plan period and the strategy for 2011-12 also raises concerns over Bhel's management capacity in setting up new plants. It also flags delayed supply of equipment by the company as one of the impediments to increase the pace of generation capacity addition this fiscal.

"Bhel has added new manufacturing capacity but has poor management capacity in setting up new power plants. There has been serious delay in plants where Bhel has supplied T&G (turbine & generator) or boilers. Performance of new power plants based on Chinese equipment is better," the report card says.

more at:
http://timesofindia.indiatimes.com/business/india-business/China-power-gear-better-than-Bhels/articleshow/9216583.cms

Bhel plans to enter Burkina Faso, Niger, Sierra Leone

As part of India’s overall strategy to strengthen relationships with mineral- and resource-rich African countries, state-run Bharat Heavy Electricals Ltd (Bhel) plans to enter new markets such as Burkina Faso, Niger and Sierra Leone by supplying power generation equipment valued at Rs.3,200 crore, said senior Bhel executives.

The projects, both in coal and hydropower, are to be set up by the respective governments of these mineral-rich countries and are expected to be executed through the Indian government’s support.

“We are looking at two orders in Burkina Faso. One is an engineering, procurement and construction (EPC) order for a 200 megawatts (MW) coal-based project and the other is for supplying electromechanical equipment for a 100MW hydropower project,” said a senior Bhel executive, who did not want to be identified.

more:
http://www.livemint.com/2011/07/12213440/Bhel-plans-to-enter-Burkina-Fa.html?atype=tp

Cabinet okay for BHEL divestment next week

The Union cabinet is likely to approve disinvestment of five per cent of the government’s equity in state-run equipment company Bharat Heavy Electricals Ltd (BHEL) next week. This is part of the government’s plan to raise Rs 40,000 crore from disinvestment in the current financial year.

“The Cabinet note has already been moved. The approval is likely to come by next week,” a person close to the development said. The divestment of BHEL is expected to raise about Rs 4,500 crore and the government’s stake would then reduce to 62.72 per cent from the current 67.72 per cent.

BHEL's board of directors had recommended the five per cent disinvestment in May.

About 10 per cent of the equity to be offloaded is to be reserved for employees. BHEL had also announced splitting of stocks of the face value of Rs 10 into five shares having a value of Rs 2 each.

In the current financial year, starting April 1, the government has raised Rs 1,162 crore through divestment, of a five per cent stake in Power Finance Corporation in May. Initially, BHEL was not originally part of the government’s list for disinvestment in this year.

Oil and Natural Gas Corporation, Steel Authority of India Ltd, Hindustan Copper, Rashtriya Ispat Nigam Ltd and National Buildings Construction Corp are to also see divestment by the government in 2011-12. In 2010-11, the government had raised Rs 22,400 crore through divestment in Coal India, SJVNL, Power Grid, Engineers India, MOIL and Shipping Corporation of India.

For the year ended March 31, 2011, BHEL had recorded an increase of about 40 per cent in consolidated net profit, at Rs 6,053 crore. The consolidated income grew 26 per cent to Rs 43,679 crore in 2010-11.

ref:
http://www.business-standard.com/india/news/cabinet-okay-for-bhel-divestment-next-week/441561/