Tuesday, August 30, 2011

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

Monday, August 29, 2011

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

Wednesday, August 24, 2011

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

Monday, August 22, 2011

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

Sunday, August 21, 2011

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

Friday, August 19, 2011

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

Wednesday, August 17, 2011

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

Saturday, August 13, 2011

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

Friday, August 12, 2011

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

Monday, August 8, 2011

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

Sunday, August 7, 2011

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.

Friday, August 5, 2011

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

Thursday, August 4, 2011

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

Tuesday, August 2, 2011

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