Bhel seeks direct disbursement of loans to complete stalled projects

To recover the Rs.20,000 crore owed by its customers, Bharat Heavy Electricals Ltd (Bhel) is trying to directly secure the disbursement of loans sanctioned to developers by lenders such as Rural Electrification Corp. Ltd (REC) for completing the stalled projects. While in the earlier arrangement, payment to Bhel was routed through the developers, a direct disbursement would also help the lenders to realize the stuck loans. “We are trying for direct payments from the lenders. This will be a win-win for both us and the lenders as they have loaned out money for these projects,” a Bhel executive said, requesting anonymity. more at: http://www.livemint.com/Companies/fEFvOC9HyKf2VXEFaIzQVN/Bhel-seeks-direct-disbursement-of-loans-to-complete-stalled.html

BHEL has the first-mover advantage if growth recovers this year

Bharat Heavy Electricals Ltd (BHEL) has been facing headwinds for many quarters as the country's power sector undergoes a crisis of sorts. However, the state-run company has made huge investment in capacity expansion to keep itself ready for any revival in the economy. In the last five years, BHEL has invested Rs 6,660 crore in building new factories and expanding existing units. The manufacturing capacity has increased to 20,000 Megawatts (Mw) per annum, highest among all power-equipment vendors in India. In comparison, its main competitor, Larsen and Toubro invested around Rs 1,000 crore in expanding its machinery and industrial products division during the period. BHEL's other two competitors in the power equipment sector, Siemens and ABB, spent around Rs 1,000 crore each on expanding their manufacturing footprint during the period. This puts the company in a favourable position to meet the demand once growth recovers and even grab market share from competitors. During the boom period, from 2005-06 to 2010-11, the company was short on capacity opening opportunity for its competitors. BHEL's market share in new orders declined to 41 per cent during the 12th Plan period from 49 per cent in the previous one. The gainers were Chinese vendors, which grabbed a third of the new orders during the 12th Plan against 22 per cent in the previous period. more at: http://www.business-standard.com/article/companies/bhel-has-the-first-mover-advantage-if-growth-recovers-this-year-113042900007_1.html

BHEL wins AIMA Managing India Award for being the Outstanding PSU of the Year

Sh. B. Prasada Rao, CMD, BHEL receiving the AIMA Managing India Award from the Hon'ble President of India, Sh. Pranab Mukherjee. BHEL was recognised as the Outstanding PSU of the year by the All India Management Association (AIMA). ref: http://www.bhel.com/press_release/press_pop.php?press_id=600

OPGC signs contract with BHEL

The Rs 11,450 crore expansion project at Ib Valley Thermal Power Station (ITPS) of Odisha Power Generation Corporation on Saturday inked a contract with BHEL where the latter will supply equipment and set up OPGC’s 1,320 MW main plant. The BTG (boiler, turbine and generator) supply and installation agreement was signed by AES Corporation managed OPGC’s Managing Director Venkatachalam Kuppusami and BHEL’s General Manager (Marketing) V. Venkatkrishnan. After signing the contract, the OPGC Managing Director said BHEL won the international competitive bidding (ICB) for the job by quoting Rs 4,051 crore. It involves supply of the main plant (boiler, turbine and generator) at an all inclusive firm price of Rs 3,748.94 crore and erection of the main plant at Rs 302.06 crore. more at : http://www.thehindu.com/business/Industry/opgc-signs-contract-with-bhel/article4660390.ece

BHEL set to produce supercritical boilers

BHEL, Tiruchi, achieved a major landmark during 2012-13 by fully establishing all manufacturing processes for supercritical range of boilers. It has manufactured associated valves and piping products adaptable to the machine tools for handling larger sizes, intricate assemblies, and advanced materials, according to its annual report. By manufacturing 2.5 lakh valves, the Tiruchi unit has increased its volume of production by 18 per cent. Shop trial assemblies of hopper to furnace transition panels and hopper to spiral furnace wall panels were carried out for the first time. Unique components such as connecting sphere, mixing sphere, intricate burner panels, headers of 2.7-metre height, and wind box of 16.7-metre height weighing 42 tonnes were successfully manufactured for the first time for supercritical boilers. A record number of 300 coal feeders and over 150 wind boxes were dispatched during the year. Other components manufactured for the first time include P92 headers of 660 mm X 120 mm outer diameter and up to 120 mm wall thickness, P91 headers of up to 813 mm diameter, economiser coils from 135-metre-long tubes built up using straight tube butt joints and forged high pressure valves of F91 material. more at: http://www.thehindu.com/news/cities/Tiruchirapalli/bhel-set-to-produce-supercritical-boilers/article4653517.ece

Bhel rolls out solar steam turbines, AC-powered rigs

Bharat Heavy Electricals Ltd’s (Bhel) Hyderabad unit is working on commercialising a solar energy driven turbine to cater to the power sector. The company has developed a 50 mw steam turbine that runs on solar power and is looking to roll out the turbines on a large scale. “There is demand for clean energy all over. We have already showcased the solar turbines to the industry and are hopeful of receiving orders,” Ravi Chander, Bhel’s executive director (heavy power equipment plant), said. The industry major is also looking to commercialise AC-powered oil rigs, a shift from the conventional DC-powered rigs. “We have secured orders for these rigs from ONGC. The order for six rigs would be at about Rs 650 crore and we are now hopeful of receiving orders from other oil companies,” he said. The company is also pinning hopes on the expansion programmes taken up by fertiliser units for supply of large capacity compressors. Interestingly, the public sector major is eyeing an opportunity to source components from the Chinese market to remain cost effective. more at: http://www.dnaindia.com/money/1824295/report-bhel-rolls-out-solar-steam-turbines-ac-powered-rigs

BHEL’s R&D arm develops training simulator for supercritical plants

BHEL’s corporate R&D wing is sharpening its focus on technology products aimed at improving the operation and performance of the firm’s supercritical power plants. As a first step, it has developed, for the first time, a full-scope operator training simulator for training of plant operators in the operations of such plants. This product will help BHEL’s 3 x 660-MW Lalitpur supercritical thermal power project in Uttar Pradesh. “The simulator can also provide remote training to operators. It can also be used to take up new developments on applications in supercritical power plants,’’ S. Sekar, General Manager, BHEL Corporate R&D, said. ref: http://www.thehindubusinessline.com/companies/bhels-rd-arm-develops-training-simulator-for-supercritical-plants/article4629618.ece?homepage=true&ref=wl_home

BHEL to develop hybrid system for renewable energy

Bharat Heavy Electricals Limited (BHEL)'s corporate R&D division is planning to step up its ongoing efforts in the renewable energy sector, including development of a hybrid system that integrates wind, solar and biomass-based power generation. "We are looking for partners to develop this hybrid system as people who are entering the wind energy sector are also looking to create solar and bio-mass capacity in a single project," S Sekar, general manager of BHEL corporate R&D division said on Tuesday. Besides the wind-mill generators, BHEL is also producing mono crystalline panels for solar power projects at its Bangalore facility while the R&D division is working on several new projects aimed at improving the product capabilities. These also include the development of a new material based on nano-technology for use in solar cells. Solar power projects built by BHEL come with rich engineering capabilities, he said. "Even compared with cheaper imports from China, our products stand competitive in the overall sense as it involves several other components, not just the solar panels alone," Sekar said in response to a question on the project costs. NTPC had recently awarded the establishment of a 20Mw solar power project to BHEL, according to him. more at: http://www.business-standard.com/article/companies/bhel-to-develop-hybrid-system-for-renewable-energy-113041600618_1.html

BHEL's Rs 1,300-crore R&D plan

Bharat Heavy Electricals Ltd (BHEL) will invest about Rs 1,300 crore towards Research & Development in the current fiscal. “During 2012-13, the company-wide R&D investment went up to Rs 1,248 crore, which was an increase of 4.1% over the previous year. This year also, the spend will be in the range of 4% over last year’s amount,” said S Sekar, General Manager, BHEL Corporate R&D. The products that were developed in-house have contributed Rs 9,643 crore, which was 19.3% of the turnover, to BHEL’s overall turnover last year. During the year under review, the R&D division had filed 385 intellectual property rights and copyrights. Meanwhile, in a bid to devise long-term R&D framework, BHEL said it has constituted a high-level R&D Advisory Council (RDAC), comprising the principal scientific advisor, director general of CSIR, chairman, Central Electricity Authority and many senior experts. BHEL has developed a solar thermal sun tracker to increase power output from the PV panels. ref: http://newindianexpress.com/business/news/BHELs-Rs-1300-crore-RD-plan/2013/04/17/article1548474.ece

BHEL-Trichy Complex to enter new areas including defence

Bharat Heavy Electricals Limited's (BHEL) Tiruchirappalli (Trichy) Complex, which manufactures boilers for the power sector, plans to diversify into new areas as part of its de-risk strategy. The Rs 15,000-crore BHEL-Trichy Complex will enter defence, oil and gas sectors, among others. The Complex has decided to ear mark 20-25 per cent of its capacity for the new business. A V Krishnan, executive director of BHEL-Trichy Complex said the diversification has started. As the first step, the Complex got few trial orders from Defence Research and Development Organisation (DRDO) in Avadi near Chennai to supply 50 thermal pressure components for the battle tanks produced by DRDO. The DRDO's requirement is 250-300 every year and the value is estimated to be around Rs 100 crore, said Krishnan. BHEL-Trichy Complex is also looking at oil, gas and refineries to supply different components to increase revenue from non-crore areas and to fully utilise the capabilities developed over the years. more at: http://www.business-standard.com/article/companies/bhel-trichy-complex-to-enter-new-areas-including-defence-113041300267_1.html

BHEL has 14,000 MW worth new contracts lined up: official

Bharat Heavy Electricals Ltd (BHEL) today said project orders involving setting up of 14,000 MW are already lined up for the company during the current fiscal. "We hope the worst is over. Contracts for power projects worth 14,000 MW is already lined up," BHEL eastern region executive director M Rajiv Kumar said. Asked about competition from the Chinese companies for these contracts, Kumar said, "in the past BHEL had been able to secure 65 per cent of the private contracts and in future also we will remain competitive." BHEL was also working on technology to enable power plants to switch between imported coal and domestic coal to get an edge over competitors. more at: http://profit.ndtv.com/news/industries/article-bhel-has-14-000-mw-worth-new-contracts-lined-up-official-320850

BHEL to invest Rs 800 cr on its solar PV plant

Bangalore-based electronics division (EDN) of Bharat Heavy Electricals Ltd (BHEL) has proposed to set up a backward integrated project for its solar photovoltaic panel business. The company has planned to set up an integrated manufacturing facility for ingots to wafers, cells and panels using crystalline photovoltaic technology. The company, which presently manufactures solar PV panels at its Bangalore plant, has estimated the investment for new facility in the region of Rs 800 crore, K C Ramamurthy, executive director, EDN, said. "We are presently manufacturing 26 Mw solar photovoltaic panels at our Bangalore plant. We intend to embark on a backward integration for this plant and produce solar cells and further manufacture wafers, and ingots in-house in a phased manner," he said. The company plans to expand the present capacity of its solar PV panel unit from 26 Mw to 480 Mw in two phases with 240 Mw in each phase. The proposed plant will be completely automated and first of its kind in the country. Till now, no other company manufactures their own solar wafers and cells including solar PV panels, Ramamurthy said. The EDN has submitted a proposal to the company's board and the final decision is yet to be taken in this regard, he said. more at: http://www.business-standard.com/article/companies/bhel-to-invest-rs-800-cr-on-its-solar-pv-plant-113041000623_1.html

BHEL Bangalore units report 10.3% decline in turnover

Bangalore-based divisions of Bharat Heavy Electricals Limited (BHEL) have reported 10.35 per cent decline in turnover at Rs 3,360 crore for the year-ended March 31, 2013. The three divisions - electronics division, industrial system group and ceramic business unit - of BHEL had reported a turnover of Rs 3,748 crore for the year 2011-12. The divisions received orders worth Rs 3,390 crore, while the total outstanding orders stood at Rs 7,975 crore. The export turnover stood at Rs 1,062 crore. "Highly sluggish and competitive market resulted in the slow conversion of orders during the last fiscal. The power equipment industry has seen several delays in large projects in the last two years. Delays in regulatory approvals has hurt the business," K C Ramamurthy, executive director (EDN), said. The Electronics Division (EDN) of BHEL recorded a 26 per cent decline in turnover for 2012-13 at Rs 1,708 crore while its profit before tax dipped 62.5 per cent to Rs 312 crore as against Rs 832 crore in the previous year. Its order book went up 46.28 per cent to Rs 1,318 crore taking the total outstanding orders to Rs 3,805 crore. more at: http://www.business-standard.com/article/companies/bhel-bangalore-units-report-10-3-decline-in-turnover-113041000625_1.html

BHEL, NTPC to float 100 MW power joint venture

Two of India's power sector majors - equipment-maker BHEL and power-generator NTPC - are collaborating to set up a 100MW power plant based on integrated gasification combined cycle (IGCC) technology. "Talks between the two companies have progressed. Discussions have been held on parameters and the plant design is already available with us," AV Krishnan, executive director, BHEL (Boiler Division) told IANS over the phone from Tiruchirapalli. According to Krishnan, the investment for the project will be around Rs. 700 crore. The plant, planned at Dadri in Uttar Pradesh, is expected to be funded by the two government companies as a 50:50 joint venture. With IGCC technology, coal is converted into gas, which in turn is used to run the turbine after removing impurities. It is less polluting and also more efficient in power generation. ref: http://www.hindustantimes.com/business-news/CorporateNews/BHEL-NTPC-to-float-100-MW-power-joint-venture/Article1-1039950.aspx

Bhel to trim hiring on gloomy outlook

In a reflection of the current business environment, state-owned Bharat Heavy Electricals Ltd (Bhel) has slashed the number of engineers it plans to hire this year. “There is an employee cost,” chairman and managing director B.P. Rao said. “I can’t keep on hiring without keeping an eye on what is happening in the sector.” India’s largest power generation equipment manufacturer used to hire an average of around 1,000 engineers every year, a number that dropped to 250 in the year ended March. In the current fiscal year, Bhel intends to hire just 200 engineers, human resources director R. Krishnan said. Most of the firm’s 13,564 executives are engineers. ref: http://www.livemint.com/Companies/3KQ0xG0HzxNb9j5aDXqOeK/Bhel-to-trim-hiring-on-gloomy-outlook.html

BHEL FY13 prov net profit beats estimates, stock up 2.6%

Bharat Heavy Electricals Limited (BHEL) has beaten street estimates by posting provisional net profit of Rs 6,485 crore in the fiscal ending March 31, 2013. According to CNBC-TV18 estimates, profit after tax was seen down 15 percent at Rs 5,970 crore versus Rs 7,040 crore y-o-y. The company's net sales was seen down 4 percent at Rs 45,277 crore versus Rs 47,228 crore (y-o-y). However, its net sales grew to Rs 50,015 crore in FY13. BHEL has also achieved order inflow guidance for FY13. ref: http://www.moneycontrol.com/news/results/bhel-fy13-prov-net-profit-beats-estimates-stock26_848695.html

A symbol of collective apathy

In May 2008, an agreement was signed between India’s biggest power equipment manufacturer, the public sector BHEL, and the power utility of Andhra Pradesh, APGENCO. Under it, BHEL would supply equipment for a 125 MW thermal power plant that APGENCO would own and run. When Business Line checked last month, there had been zero progress on the project in the last five years. more at: http://www.thehindubusinessline.com/opinion/a-symbol-of-collective-apathy/article4591441.ece

BHEL, shouldering social responsibility

A group of tribal students keenly follow lessons in English, Maths and Science on a giant screen. They wait for the special class everyday to improve their skills in the subject. The classes are held at a distant hill station in Solan in Himachal Pradesh and are beamed to the classroom here with the help of multi-media and internet. A projector that magnifies signals beams it to the screen for children. For this, group of tribal students from Jhabua and Khargone district studying in Vivekanand school, a boarding school run by Ram Krishna Mission near Awadhpuri area technology has really helped. Thanks to Bharat Heavy Electricals Limited (BHEL) that has donated the projector to the school under its corporate social responsibility (CSR). "The classes take place every day during the evening and about 20 students who are now in class IX participate," says the school principal K S Parihar. "It's amazing, and the children have been benefitted a lot". The inmates of shelter home 'Ummeed' have found a new ummeed in BHEL after the company adopted the shelter home. Those inmates-children neglected by the society- are now happy and look forward to doing well in life. more at: http://timesofindia.indiatimes.com/city/bhopal/BHEL-shouldering-social-responsibility/articleshow/19421899.cms

BHEL agrees to pay Rs 9.5L/acre for Bhandara plant

Yet another windfall awaits some land owners in the region, which has seen a series of land acquisition for industrialization lately. Public sector undertaking Bharat Heavy Electricals Ltd (BHEL), which plans a Rs 2500 crore plant in Bhandara district, has agreed to pay Rs 9.5 lakh an acre to 218 families holding 450 acres. The area covers three villages Mundipar, Bamni and Khairi. This is more than nine times the peak rates as per government ready reckoner which is drawn on the basis of deals registered in particular area. Even though actual market rates are always more than the ready reckoner, the price offered by BHEL is much higher than market rates. "Rest of the proceedings are over and disbursals of amount would begin soon," said state's industries secretary Apoorva Chandra, who was in the city to attend a follow-up meeting of Advantage Vidarbha investment meet. BHEL is coming up with country's first project to make silicon chips that goes into making photovoltaic cells to harness solar energy. The investment is located in constituency of political heavyweight Praful Patel of NCP. Patel heads the union heavy industries ministry under which BHEL comes. Sources said the minister had prevailed upon the PSU management to bring the unit at Bhandara. more at : http://timesofindia.indiatimes.com/city/nagpur/BHEL-agrees-to-pay-Rs-9-5L/acre-for-Bhandara-plant/articleshow/19409482.cms

BHEL can bid for projects in Yemen

BHEL has good scope to bid for power projects in the Republic of Yemen, said a senior minister from that country. On a visit to the R.C. Puram Unit of BHEL, Saleh Hassan Saleh Sumia, Minister of Electricity & Energy, said there is lot of scope for business in Yemen and we are looking forward to more participation from the company. The R.C. Puram unit is supplying four air cooled turbo-generators for the Marib Phase-II GTG Project it Yemen. The Yemenese minister was accompanied by a delegation and the Ambassador to India Khadija RadmanGhanim. Two of the generator sets have already been supplied and the balance under production, a press release said. The team from Yemen reviewed the progress of the project. ref: http://www.thehindubusinessline.com/companies/bhel-can-bid-for-projects-in-yemen/article4581372.ece

BHEL ties up with Mitsubishi Japan for new technology

BHEL today said it has tied up with Japan-based Mitsubishi Heavy Industries, which would enable the power equipment maker to receive environment- friendly technology for its manufacturing units. "BHEL has geared up for the manufacture and supply of pollution control equipment to meet the emerging requirement of thermal power plants," an official statement said. To this effect, BHEL has entered into a License Agreement with Mitsubishi Heavy Industries Ltd. (MHI), Japan - a leading supplier of FGD Systems, for acquiring FGD system technology, finding application in fossil fuel power plants, it said. The new technology based systems will be engineered and manufactured at the Ranipet unit of BHEL in Tamil Nadu. ref: http://economictimes.indiatimes.com/news/news-by-industry/indl-goods/svs/engineering/bhel-ties-up-with-mitsubishi-japan-for-new-technology/articleshow/19377216.cms

Hindustan Salts Said To Partner BHEL For Mega Solar Project

PSU firm manufacturing common salt, Hindustan Salts is in talks to partner another state-owned firm, BHEL to come up with a mega solar power plant, according to Indian Express. The planned unit is learnt to be Asia’s largest solar power generation facility on about 15,000 acres of unutilized salt pan land in Rajasthan. Also both the companies are under the planning stage of developing another 23,000 acres of land in Gujarat for setting up a combined solar and wind power capacity adding up to 4,000 MW. IL&FS and BHEL are doing a feasibility study to install the solar power plant on its land. Out of 57,000 acres of land owned by Hindustan Salts in Rajasthan, 37,000 acres is covered by a lake. ref: http://www.dealcurry.com/2013043-Hindustan-Salts-Said-To-Partner-BHEL-For-Mega-Solar-Project.htm

L&T, BHEL win big ticket EPC orders, shares gain

BHEL has also secured Rs 5600-5700 crore EPC (engineering, procurement, construction) order for a Rajasthan project, say sources. Its stock too climbed 2.77 percent to Rs 181.85 ref: http://www.moneycontrol.com/news/business/lt-bhel-win-big-ticket-epc-orders-shares-gain_844716.html