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