BGR, BHEL to bag Rs 9000 cr NTPC, DVC contracts

BGR Energy and Bharat Heavy Electricals Ltd (BHEL) have emerged as lowest bidders for Rs 9,000 crore contract seeking supply of equipment for five projects of NTPC and Damodar Valley Corp (DVC).

BGR Energy is likely to be awarded contract for supply of 660-mw energy-efficient boilers to three projects, while BHEL is expected to bag rest two, an NTPC official said.

"The lowest bidder is BGR Energy followed by BHEL and L &T Power. After the bids are evaluated the orders will be placed to two lowest bidders as per cabinet guidelines," an NTPC official said.

The equipment is being sourced for NTPC's Mouda, Solapur, Meja, Nabinagar and DVC's Raghunathpur projects.

ref:
http://economictimes.indiatimes.com/news/news-by-industry/energy/power/bgr-bhel-to-bag-rs-9000-cr-ntpc-dvc-contracts/articleshow/12083016.cms

BHEL's pact for Rs 8,000 cr power project falls through

The Tamil Nadu Electricity Board (TNEB) has decided to break its ties with public-sector company Bharat Heavy Electricals Ltd (BHEL) for implement the Rs 8,000 crore Udangudi Power Project in Tamil Nadu. The state government alleged that the project was delayed for four years and one of the main reasons was BHEL.

In a statement Tamil Nadu Chief Minister J Jayalalithaa said that the project has been delaying since the Union Environment Ministry was not giving its nod stating that long term coal linkage is not available for the project and the other reason is BHEL was not cooperating, expect that it allocated its share of Rs 32.5 crore towards its stake in the project.

more at:
http://www.business-standard.com/india/news/bhels-pact-for-rs-8000-cr-power-project-falls-through/466157/

BHEL bags orders worth Rs 7.74 bn from ONGC

Bharat Heavy Electricals (BHEL) has secured a major contract worth Rs 7.74 billion for supply of onshore drilling rigs from India`s premier upstream oil company, Oil and Natural Gas Corporation (ONGC). The order envisages manufacture and supply of 6 numbers 2,000 HP onshore drilling rigs with AC drives.

Significantly, ONGC has gone in for acquisition of new rigs after a gap of over 18 years and has opted for rigs with high efficency AC drives in line with the latest trends worldwide. Hitherto, ONGC has procured rigs with AC SCR technology where the drawworks and mud pumps, etc. are powered with DC drives. Rig operation with AC drives is more efficient than DC drives due to the high power factor of AC motors.

more at:
http://www.myiris.com/newsCentre/storyShow.php?fileR=20120227162248199&dir=2012/02/27

BHEL to study TN offer for quitting Udangudi power project

IANS reported that power equipment major Bharat Heavy Electricals Ltd will study the Tamil Nadu government's offer to it on the cancellation of the joint venture 1,600 MW Udangudi power project.

A senior official told that "We have not got any official communication from the Tamil Nadu government/Tamil Nadu Electricity Board on the decision to scrap the power project. We will study the pros and cons of the offer that we expect the state government to make and decide on exiting the joint venture.”

Tamil Nadu chief minister Ms J Jayalalithaa recently announced the cancellation of the joint venture citing the lack of progress in the INR 8,000 crore Udangudi power project for which MoU was signed between TNEB and BHEL to promote the power project in 2007. In 2008, TNEB and BHEL floated a joint venture company Udangudi Power Corporation Ltd, each taking 26%. The balance 48% stake was to be contributed by a private player participating in the project or by a financial institution funding the project. The project is yet to get coal linkage and the environmental clearance. The public hearing after preparing the environmental impact assessment was held in 2009. The two joint venture partners have invested INR 32.5 crore each and completed the site levelling activities at the project site.

TN CM has also decided that the state government would fully fund the project, which would be executed by TNEB as a state project with imported coal.

(Sourced from IANS)

ref:
http://www.steelguru.com/indian_news/BHEL_to_study_TN_offer_for_quitting_Udangudi_power_project/252221.html

Video magazine of BHEL released

The first edition of a video magazine of Bharat Heavy Electricals Limited, Tiruchi, christened, ‘ Nirmaalai,' was released here by A.V.Krishnan, Executive Director, BHEL, Tiruchi, on Saturday.

The video magazine to be a bi-monthly one would cover major events taking place at BHEL Tiruchi such as major dispatch of boiler components to power projects, important visits, message to employees, feedback from select customers, future plans, value systems, corporate social responsibility activities, and health issues.

Mr.Krishnan said the launch of magazine was part of the company's communication strategy to connect with employees.

more at :
http://www.thehindu.com/news/cities/Tiruchirapalli/article2935021.ece

BHEL's exit from Udangudi Power depends on government's offer

Bharat Heavy Electricals Ltd (BHEL) will study the Tamil Nadu government's offer to it on the cancellation of the joint venture 1,600 MW Udangudi power project, an official said on Saturday.

"We have not got any official communication from the Tamil Nadu government/Tamil Nadu Electricity Board (TNEB) on the decision to scrap the power project. We will study the pros and cons of the offer that we expect the state government to make and decide on exiting the joint venture," a senior BHEL official not wanting to be named told IANS over phone from New Delhi.

Chief Minister J. Jayalalithaa Friday announced the cancellation of the joint venture citing the lack of progress in the Rs.8,000 crore Udangudi power project after the Memorandum of Understanding (MoU) was signed between TNEB and BHEL to promote the power project in 2007.

ref:
http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/engineering/bhels-exit-from-udangudi-power-depends-on-governments-offer/articleshow/12035637.cms

Tamil Nadu scraps power joint venture, BHEL surprised

Taking the state-owned Bharat Heavy Electricals Ltd. (BHEL) by surprise, Tamil Nadu Chief Minister J. Jayalalithaa on Friday scrapped the 1,600 MW power joint venture with it and announced that the government would fully fund the project itself.

In a statement issued here on Friday, Jayalalithaa said there had been no progress in the Rs.8,000 crore power project after the Memorandum of Understanding (MoU) was signed in 2007 between the Tamil Nadu Electricity Board (TNEB) and BHEL.

The TNEB had signed the MoU with BHEL to promote the power project at Udangudi in Tuticorin district, taking a 26 percent stake each in the Udangudi Power Corporation Limited, which was promoted in 2008.

more at :
http://ibnlive.in.com/news/tn-scraps-power-joint-venture-bhel-surprised/233364-62-128.html

19% import duty likely on power equipment; BHEL reacts

Shares of major Bharat Heavy Electricals (BHEL) gained more than 4% today, on reports that government is mulling a 19% import duty on power equipment for mega projects.
It touched an intraday high of Rs 317.40 and an intraday low of Rs 308. At 09:48 hrs the share was quoting at Rs 316.70, up Rs 13.25, or 4.37%.

It was trading with volumes of 467,283 shares. In the previous trading session, the share closed up 6.53% or Rs 18.60 at Rs 303.45.
The company's trailing 12-month (TTM) EPS was at Rs 125.82 per share. (Dec, 2011). The stock's price-to-earnings (P/E) ratio was 2.52. The latest book value of the company is Rs 82.34 per share. At current value, the price-to-book value of the company was 3.85. The dividend yield of the company was 1.97%.

ref:
http://www.moneycontrol.com/news/buzzing-stocks/19-import-duty-likelypower-equipment-bhel-reacts_671251.html

Government mulls global bidding process for ultra-mega power project developers

To provide a level-playing field to domestic power equipment suppliers such as BHEL and L&T, the government is considering to make it mandatory for ultra-mega power project (UMPP) developers to obtain equipment through global bidding process.

At present, state-owned power utility NTPC obtains equipment through the global bidding process, while the UMPPs follow the bilateral negotiations route.

"The Ministry of Power has to work out a scheme to give same treatment as that of NTPC to the UMPPs," sources told reporters.

The ministry is preparing a Cabinet note on the subject, they added.

ref:
http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/engineering/government-mulls-global-bidding-process-for-ultra-mega-power-project-developers/articleshow/11966774.cms

Five reasons why BHEL shares have jumped

Shares of heavy equipment maker Bharat Heavy Electricals Limited soared on the bourses today. BHEL traded 9% higher at Rs 309.90 at 1000 hours in an up market today.

Here are the reasons why the stock has suddenly spiked:

1) The Supreme Court yesterday cleared the way for state-run power generation utility NTPC Ltd to place orders worth Rs 16,000 crore for supercritical equipment. The court ruled that Ansaldo Caldaie, an Italian boiler maker, had failed to technically qualify for the bidding process.

2) BHEL witnessed a negative order inflow of Rs 3,500 crore for the October-December quarter. For the nine months ending December 2011, the order inflow for BHEL stood at Rs 10,000 crore against a guidance of Rs 55,000 crore for FY12.

3) The bulk tender award will be a significant boost to BHEL's order book. BHEL is assured of Rs 5,000 crore worth of orders after the Supreme Court Order.

4) Government's thrust to speed up stalled projects to improve near-term outlook.

5) Analysts say BHEL is trading at 12-times FY13E earnings and still has headroom to reflect this optimism.

ref:
http://profit.ndtv.com/News/Article/five-reasons-why-bhel-shares-have-jumped-298023

ONGC stake sale gets nod, BHEL to wait

An Empowered Group of Ministers (EGoM) on Wednesday approved the auction route for selling 5 per cent stake in state-run oil major ONGC before the end of the current fiscal. The proposed disinvestment of government stake in BHEL has, however, been postponed to the next fiscal.

The EGoM, headed by Finance Minister Pranab Mukherjee, met to decide on stake sale in the two major PSUs with a view to mopping up about Rs 14,500 crore in the current fiscal, up from the Rs 1,145 crore raised so far.

With BHEL now out of the divestment agenda for the current fiscal, only the ONGC follow-on issue is expected to garner additional revenues of around Rs 12,000 crore for this fiscal year. The panel would meet again to decide on the time and base price of the stake sale.

more ar:
http://www.indianexpress.com/news/ONGC-stake-sale-gets-nod--BHEL-to-wait/912590/

BHEL share sale likely next fiscal year - minister

A share sale by the government in state-run power equipment maker Bharat Heavy Electricals Ltd may happen next fiscal year, heavy industries minister Praful Patel said.
A panel of ministers met on Wednesday to consider stake sale in BHEL, but did not take any decision on the matter, Patel told reporters.
The planned stake sale in BHEL, which had been cleared by the cabinet last year, was expected to raise about $1 billion.
India had planned to raise about 400 billion rupees from share sales in state-run firms this fiscal year that ends in March, but has so far only raised about $250 million.

ref:
http://www.moneycontrol.com/news/wire-news/bhel-share-sale-likely-next-fiscal-year-minister_668313.html

Ministers to discuss ONGC, BHEL share sales on Wed

A panel of ministers will meet on Wednesday to discuss selling shares in state-run Oil and Natural Gas Corp(ONGC.NS) and Bharat Heavy Electricals(BHEL.NS), divestment secretary, Haleem Khan, told reporters.

India originally planned to raise about $9 billion from share sales this fiscal year that ends in March, but has so far only raised about $250 million.

The government had deferred ONGC's public offer to raise up to $2.5 billion in October, after tepid response from investors during roadshows amid weak equity markets. The BHEL share sale is expected to raise up to $1 billion.

ref:
http://in.reuters.com/article/2012/02/14/india-sharesale-ongc-bhel-idINDEE81D06O20120214

Government to sell stake in ONGC, BHEL to raise Rs 14,500 crore in FY'12

The government is moving ahead with plans of disinvestment in blue-chips ONGC and BHEL through the auction route to raise about Rs 14,500 crore within the current fiscal itself.

The decision on stake sale is likely to be taken at a meeting of the Empowered Group of Ministers (EGoM) on February 15, according to sources.

While the ONGC stake sale through the auction route is expected to yield Rs 12,000 crore, the BHEL might fetch the government about Rs 2,500 crore.


more at:
http://economictimes.indiatimes.com/news/economy/policy/government-to-sell-stake-in-ongc-bhel-to-raise-rs-14500-crore-in-fy12/articleshow/11872819.cms

BHEL demonstrates full-load operation of its first 250 MW CFB boiler

Bharat Heavy Electricals Limited (BHEL), Tiruchi, successfully demonstrated a full-load operation of its first 250 MW Circulating Fluidised Bed (CFB) boiler supplied to Neyveli Lignite Corporation (NLC) at Neyveli on February 4. The second unit is in advanced stages of erection. It is stated to be the highest capacity CFB Boiler in the whole of South East Asia.

The successful demonstration of the unit's performance signals the use of a new technology for utilising India's vast lignite resource in an environmentally friendly and efficient manner.

more at:
http://www.thehindu.com/news/cities/Tiruchirapalli/article2872338.ece

BHEL urges customers to use quality spares for power plant efficiency

Best efficiency of power plants could be achieved only through placing orders for spares with original equipment manufacturers, A.V.Krishnan, Executive Director, BHEL, Tiruchi, said.

Speaking at a customer meet organised by the Spares and Services Business Groups of BHEL's New Delhi, Tiruchi, and Ranipet units at Chennai recently, he assured efficiency of spares supplied by BHEL. On the services front, BHEL has formed cross functional teams with a few customers organizations to analyse and resolve problems like tube failures and vibrations, Mr. Krishnan said.

Thirty-five customer officials belonging to seven Power Generation companies in southern region took part in the meeting. The participants represented Tamil Nadu Generation and Distribution Corporation (TANGEDCO), Chennai Petroleum Corporation Limited, Madras Fertilizers Limited, Puducherry Power Corporation Limited, Surana Power Projects Limited, Sterlite Industries Limited and Rajeswari Sugars Limited, according to a BHEL press release.

more at:
http://www.thehindu.com/news/cities/Tiruchirapalli/article2868474.ece

Decision on disinvestment strategy ONGC, BHEL deferred

A decision on the disinvestment strategy for two leading state run companies - ONGC and BHEL was deferred after a meeting of the empowered group of ministers.

It was expected that in wake of the new guidelines issued by the market regulator SEBI, the government will once again kick start the divestment process in these two companies, which may fetch it around Rs 14,000 crore.

"We have discussed today the implications of the new SEBI guidelines. We are yet to take a decision in regard to mode and timing to be adopted (for divestment in ONGC)," said Oil Minister Jaipal Reddy.

more at:
http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/decision-on-disinvestment-strategy-ongc-bhel-deferred/articleshow/11729326.cms