BHEL to set up 500 MW solar power project

The heavy industries ministry is preparing to take cabinet approval for a 500-MW solar power project to be set up by state-run heavy electricals major BHEL. The Rs.3,700 crore project is proposed to have 40 percent funding from the National Clean Energy Fund, the source added. Meanwhile, Minister of State Heavy Industries G.M. Siddeshwara told parliament Tuesday in a written reply that of the 84 thermal power units being implemented by BHEL, 47 are delayed for reasons not attributable to the company. Twenty-three units are on hold owing to reasons like customer funds constraints, fuel availability and clearances, that is, also for factors not attributable to BHEL, the minister added. "The main reasons for delays in completion of power projects include slow civil works, contractual issues, logistics, force majeure situations, law and order problem, etc," Siddeshwara said. The company got this fiscal's first order in the power sector in September, and has got five orders worth Rs. 12,337 crore so far. ref: http://www.daijiworld.com/news/news_disp.asp?n_id=279288

Bhel profits hit by poor utilization, high working capital

Bharat Heavy Electricals Ltd (Bhel) reported dismal results in the three months to September, marking eight consecutive quarters of decline in net revenue and profit. The travails of the infrastructure segment continue to hurt the operating performance of the country’s largest capital goods maker. Bhel’s woes are a combination of weak execution and high receivables. Some slow moving, large orders, mainly in the energy sector, and a declining order backlog led to a sharp 32% decline in net revenue from the year-ago period. It meant low utilization of its factories, hurting operating profitability. Raw material costs and other expenses were contained to an extent. But staff costs rose quite a bit. Operating profit, which plummeted by 52% from the year-ago period, was also hugely below Bloomberg’s consensus. The operating margin shocked the Street; at 4.7%, it was nearly 2 percentage points lower than in the year-ago period. Profitability dipped in both the power and industry segments. A bigger concern is the high capital employed in spite of the decline in revenue, which indicates the stretched working capital cycle. A report from Espirito Santo Securities India Pvt. Ltd also points out that Bhel’s high receivables situation is unlikely to change soon. Besides, about one-third of the receivables are outstanding for more than one year. Read more at: http://www.livemint.com/Money/JxxPe4mB6q7LIApeu0a8LI/Bhel-profits-hit-by-poor-utilization-high-working-capital.html?utm_source=copy more at: http://www.livemint.com/Money/JxxPe4mB6q7LIApeu0a8LI/Bhel-profits-hit-by-poor-utilization-high-working-capital.html

BHEL commissions second gas-based power plant in Tripura

Bharat Heavy Electricals Ltd has commissioned the second module of ONGC Thermal Power Corp's gas-based power plant in Tripura, completing the combined-cycle power project that would use gas from Oil & Natural Gas Corp's adjoining fields in the northeastern state. Located at Palatana in Tripura's Udaipur district, around 50 kms from the state capital of Agartala, the plant comprises two modules of 363.3 mw each, equipped with fuel efficient advanced gas turbines. State-run BHEL, whic .. Read more at: http://economictimes.indiatimes.com/articleshow/45176869.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst more at: http://economictimes.indiatimes.com/industry/energy/power/bhel-commissions-second-gas-based-power-plant-in-tripura/articleshow/45176869.cms

BHEL Q2 net slumps 73% to Rs 125 cr

BHEL today saw its net profit tumble nearly 73% to Rs 124.84 crore in three months ended September this year as lower revenues from power and industry segments took a toll on its profitability. Bharat Heavy Electricals Ltd (BHEL), which is currently facing tough business conditions, had a net profit of Rs 455.95 crore in the September quarter last year. Net sales of the power equipment maker fell to Rs 6,027.58 crore in the second quarter of current fiscal. In the year-ago period, the same stood at Rs 8,819 crore, according to a regulatory filing. Reflecting tough business conditions, BHEL's revenues from power as well as industry segments declined in the latest quarter under review. In the 2014 September quarter, power segment saw revenues fall to Rs 4,736.95 crore from Rs 7,576.38 crore in the year-ago period. Besides, revenues from industry segment dropped to Rs 1,582.36 crore from Rs 1,739.18 crore in the same period a year ago. more at: http://www.business-standard.com/article/pti-stories/bhel-quarterly-net-profit-slumps-73-pc-to-rs-125-crore-114111401037_1.html

BHEL renovates, modernises 110 MW unit of Muzaffarpur power station in Bihar

Bharat Heavy Electricals Limited (BHEL) today said it had successfully carried out the renovation and modernisation (R&M) of the 100 MW unit 2 of the Muzaffarur Thermal Power Station in Bihar. The plant belongs to Kanti Bijlee Utpadan Nigam Limited (KBUNL), a joint venture of NTPC Ltd and BSPGCL. Following the successful R&M, the unit has been running on full capacity, ensuring addition of 110 MW to Bihar. The unit was originally supplied and commissioned by BHEL in March, 1986. With this, the working life of the machine has been extended by another 15-20 years, a press release from BHEL said. This follows the successful completion of R&M work of Unit-1 at Muzaffarpur TPS, which was commissioned in September, 2013 by BHEL. So far, BHEL has completed R&M of 17 sets totalling to initial design capacity of 2,000 MW, the release said. more at: http://netindian.in/news/2014/11/11/00031373/bhel-renovates-modernises-110-mw-unit-muzaffarpur-power-station-bihar

BHEL bags Rs 220 crore contract

BHEL has bagged an order worth Rs 220 crore for supplying an electrostatic precipitator package to a power project in Odisha. The contract is related to the 2x800 MW Darlipali super thermal power project. In a statement today, Bharat Heavy Electricals Ltd said the Rs 220 crore order has been placed by NTPC. The plant is located in Sundargarh district of Odisha. more at: http://www.business-standard.com/article/pti-stories/bhel-bags-rs-220-crore-contract-114110200199_1.html