The Centre will try to standardise power projects to ensure that only technologies proven in Indian conditions are used, Minister of State for Power and Commerce Jairam Ramesh said here today.
Hinting at a move against imports of entire plants, he said power projects with imported equipment are not proving viable. “We found that 20 per cent of the 78,000 mw capacity to be added during the 11th Plan period will have the main plant package imported from China. But the machinery from China already used in West Bengal’s Sagardighi and Durgapur has proved inefficient in operating with Indian coal, which has a high ash content,” he said.
The government-owned Bharat Heavy Electricals Ltd, which had a monopoly when imports were not allowed, has been unable to meet the demand for power plant equipment.
Last year, Union power minister Sushil Kumar Shinde had said Bhel had been asked to compete for new projects via open global tenders. This had opened the floodgates to Chinese manufacturers.
“BHEL has proved (itself) with 500 mw plant packages and we are insisting that the BHEL standard should be implemented in all Indian power projects,” Ramesh said.
He made clear that the government is not eager to put BHEL under the adverse competition.
While BHEL is increasing its equipment-making capacity from the current 10,000 mw to 15,000 mw by 2011, Larsen & Toubro is setting up a facility of 4000 mw capacity per annum at Hazira.
Alstom and Alsando are already negotiating with the government for boiler making units and the proposed joint venture of power utility NTPC Ltd and BHEL of 4000 mw capacity will be commissioned by 2012.
Ramesh said orders have already been placed for 71,000 mw, but given India’s long-term power demand projection, orders for 25,000-30,000 mw have to be placed every year. The new manufacturing units will be able to make timely delivery of these orders, he said.
Union power minister Sushil Kumar Shinde had earlier told The Indian Express that China has five or six companies meeting the annual capacity addition of nearly 60,000 mw and India needs to learn from the China experience and have more manufacturers to support its power programme.
source;
http://www.expressindia.com/latest-news/Centre-wants-BHEL-norms-local-machines-in-power-plants/298856/
Showing posts with label power sector. Show all posts
Showing posts with label power sector. Show all posts
Saturday, April 19, 2008
Thursday, April 3, 2008
Bhel net rises 17%, plans greater role in nuclear segment
Spurred by a jump in orders, India’s largest power equipment maker Bharat Heavy Electricals Ltd (Bhel) on Thursday reported a 17% growth in net profit for the fiscal year 2007-08 compared with the previous year.
Its net profit was Rs2,815 crore compared with Rs2,415 crore a year ago. The company’s order book rose 41% to Rs50,265 crore and turnover was up 15% at Rs21,608 crore, its highest till date.
“There is a shortage of raw materials, problems in supply chain management and availability of skilled manpower. However, our projects in the 11th Plan period (2007-12) will be on time as we have taken advanced manufacturing action and ordered raw materials,” said K. Ravi Kumar, chairman and managing director.
However, power sector analysts say Bhel will not be able to sustain a growth trajectory in the long term because of increasing competition.
“Bhel will increasingly witness competition from overseas firms, particularly Chinese suppliers. When China’s domestic demands are met, these firms will start dumping in the Indian market as they will have an immense cost advantage,” said a New Delhi-based analyst, who did not want to be identified.
Bhel remains unfazed and proposes to introduce thermal power generator units with new capacities of 270MW, 525MW and 600MW to counter the Chinese threat.
“We are ready to take on international competition,” said Kumar.
He, however, admitted that since the yuan is undervalued, there will be pressure from Chinese companies such as Dongfang Electric Corp. Ltd, Shanghai Electric Power Co. Ltd and Harbin Power Equipment Co. Ltd.
“Currency fluctuation will hurt our margins to a certain extent. However, 40% of our contracts are covered for price fluctuations,” Kumar added.
To meet the increasing demand, Bhel plans to hire around 20,000 employees over the next five years that could even include lateral recruitment.
In another development, Bhel is in talks with Reliance Power Ltd (RPL) of the Reliance-Anil Dhirubhai Ambani Group for supplying equipment to the two 4,000MW projects of RPL at Sasan in Madhya Pradesh and Krishnapatnam in Andhra Pradesh.
The company will also start making, in a venture with Nuclear Power Corp. of India Ltd (NPCIL), nuclear-powered turbines and generators with capacities of 1,000MW and 1,600MW. It may also take up engineering, procurement and construction activities in the nuclear power sector.
“We, along with NPCIL, may also partner with an overseas technology provider for the nuclear power business. We are open to even giving them equity.”
Bhel has an annual manufacturing capacity of making power equipment that have a total capacity of 10,000MW, which the company plans to raise to 15,000MW a year by December 2009.
source:
http://www.livemint.com/2008/04/04004721/Bhel-net-rises-17-plans-grea.html
Ramesh
Human Search Engine
http://www.alluwanted.com
Its net profit was Rs2,815 crore compared with Rs2,415 crore a year ago. The company’s order book rose 41% to Rs50,265 crore and turnover was up 15% at Rs21,608 crore, its highest till date.
“There is a shortage of raw materials, problems in supply chain management and availability of skilled manpower. However, our projects in the 11th Plan period (2007-12) will be on time as we have taken advanced manufacturing action and ordered raw materials,” said K. Ravi Kumar, chairman and managing director.
However, power sector analysts say Bhel will not be able to sustain a growth trajectory in the long term because of increasing competition.
“Bhel will increasingly witness competition from overseas firms, particularly Chinese suppliers. When China’s domestic demands are met, these firms will start dumping in the Indian market as they will have an immense cost advantage,” said a New Delhi-based analyst, who did not want to be identified.
Bhel remains unfazed and proposes to introduce thermal power generator units with new capacities of 270MW, 525MW and 600MW to counter the Chinese threat.
“We are ready to take on international competition,” said Kumar.
He, however, admitted that since the yuan is undervalued, there will be pressure from Chinese companies such as Dongfang Electric Corp. Ltd, Shanghai Electric Power Co. Ltd and Harbin Power Equipment Co. Ltd.
“Currency fluctuation will hurt our margins to a certain extent. However, 40% of our contracts are covered for price fluctuations,” Kumar added.
To meet the increasing demand, Bhel plans to hire around 20,000 employees over the next five years that could even include lateral recruitment.
In another development, Bhel is in talks with Reliance Power Ltd (RPL) of the Reliance-Anil Dhirubhai Ambani Group for supplying equipment to the two 4,000MW projects of RPL at Sasan in Madhya Pradesh and Krishnapatnam in Andhra Pradesh.
The company will also start making, in a venture with Nuclear Power Corp. of India Ltd (NPCIL), nuclear-powered turbines and generators with capacities of 1,000MW and 1,600MW. It may also take up engineering, procurement and construction activities in the nuclear power sector.
“We, along with NPCIL, may also partner with an overseas technology provider for the nuclear power business. We are open to even giving them equity.”
Bhel has an annual manufacturing capacity of making power equipment that have a total capacity of 10,000MW, which the company plans to raise to 15,000MW a year by December 2009.
source:
http://www.livemint.com/2008/04/04004721/Bhel-net-rises-17-plans-grea.html
Ramesh
Human Search Engine
http://www.alluwanted.com
Thursday, March 27, 2008
BHEL: Powerhouse
If the recommendations of the Sixth Pay Commission are fully implemented, there would be an incremental burden on the exchequer of Rs 7,975 crore each year. The panel is set up every 10 years to review the emoluments and pay of Central government employees.
Following the development, most Central PSUs will feel the blow of rising staff costs in their financials to some extent. Bharat Heavy Electricals (Bhel), India's largest power equipment maker, is expected to see a decline of 50 basis points in its operating profit margins for every 5% rise in wage costs, analyst Vinod Chari of Credit Suisse Group said in a note to clients on Wednesday.
Chari cut Bhel's share price target by 13% in the next 12 months to Rs 2,714 and has cut the earnings per share estimates for the year ending March 2010 by 8%, on anticipation that wages may climb 40% from 30% expected earlier.
Another concern for Bhel lately has been the dumping (as the currency is undervalued) by Chinese companies. The price difference is said to be up to 20%.
However, Bhel maintains that its equipment are relatively better than those of rivals and that the plant load factor of its projects is 90% as against 60% in case of Chinese equipment.
While the Sixth Pay Commission brings with itself some form of margin pressure for Bhel, the good part is that the company is experiencing robust order inflows. Bhel's new products, new technology and new captive power clients or independent power producers are driving order inflows.
Bhel is currently sitting on an order book of over Rs 82,000 crore, which reflects a 49% YoY growth led, by order intake of Rs 11,000 in Q4FY08 on new order flows. Revenues for the quarter increased 14% YoY to Rs 4,964.14 crore, while net profit increased by 15.6% to Rs 771.9 crore.
Bhel is expected to perform well in future, given its robust order book, access to super critical orders and efforts to improve competitiveness.
The stock has outperformed the broader Sensex and appreciated by 73.4% against the Sensex's increase of 22.5% in the past one year. At Rs 1,954.95, the stock trades at 22.4 and 18.03 times its estimated earnings for 2009 and 2010, respectively. It is a good pick in its space.
Under license from www.3dsyndication.com
ref:
http://sify.com/finance/fullstory.php?id=14630977
Following the development, most Central PSUs will feel the blow of rising staff costs in their financials to some extent. Bharat Heavy Electricals (Bhel), India's largest power equipment maker, is expected to see a decline of 50 basis points in its operating profit margins for every 5% rise in wage costs, analyst Vinod Chari of Credit Suisse Group said in a note to clients on Wednesday.
Chari cut Bhel's share price target by 13% in the next 12 months to Rs 2,714 and has cut the earnings per share estimates for the year ending March 2010 by 8%, on anticipation that wages may climb 40% from 30% expected earlier.
Another concern for Bhel lately has been the dumping (as the currency is undervalued) by Chinese companies. The price difference is said to be up to 20%.
However, Bhel maintains that its equipment are relatively better than those of rivals and that the plant load factor of its projects is 90% as against 60% in case of Chinese equipment.
While the Sixth Pay Commission brings with itself some form of margin pressure for Bhel, the good part is that the company is experiencing robust order inflows. Bhel's new products, new technology and new captive power clients or independent power producers are driving order inflows.
Bhel is currently sitting on an order book of over Rs 82,000 crore, which reflects a 49% YoY growth led, by order intake of Rs 11,000 in Q4FY08 on new order flows. Revenues for the quarter increased 14% YoY to Rs 4,964.14 crore, while net profit increased by 15.6% to Rs 771.9 crore.
Bhel is expected to perform well in future, given its robust order book, access to super critical orders and efforts to improve competitiveness.
The stock has outperformed the broader Sensex and appreciated by 73.4% against the Sensex's increase of 22.5% in the past one year. At Rs 1,954.95, the stock trades at 22.4 and 18.03 times its estimated earnings for 2009 and 2010, respectively. It is a good pick in its space.
Under license from www.3dsyndication.com
ref:
http://sify.com/finance/fullstory.php?id=14630977
Monday, March 24, 2008
Bhel plans capacity expansion in Trichy
Chennai, March 23 Bharat Heavy Electricals Limited (Bhel) at Tiruchirappalli in Tamil Nadu has embarked on a major capacity augmentation scheme. It has invested Rs 190 crore on equipment to produce 10,000 mw of power capacity equivalent per year and will be investing Rs 732 crore to further enhance the capacity to15,000 mw.
The initiatives are in line with the Central Electricity Authority’s capacity addition target of 78,577 mw for the Eleventh Plan, the company said here. Bhel Tiruchirappalli, which has achieved a record turnover of Rs 4,607 crore during fiscal 2006-07 with an all-time high profit before tax of Rs 872 crore, has now spruced up its construction activity to complete the second phase of its capacity augmentation scheme at an investment of
Rs 732 crore.
The second phase of expansion will be completed by March 2009, said a senior official of the company. The first phase was completed within a very short period at an estimated cost of Rs 190 crore, the official added.
According to the official, Bhel is setting up facilities to make 800 mw/1,000 mw super critical boilers at its Trichy plant.
The on-going phase-II will now focus on raising the overall installed capacity through the introduction of 75 types of high productive machines, the official said.
The total covered shop floor area, with associated office buildings, machinery, material handing, testing and support facilities added in the two phases will be around 1.25 million sq ft (around 1,12,000 sq m), the official added.
Reported at: http://www.financialexpress.com/news/Bhel-plans-capacity-expansion-in-Trichy/287669/
The initiatives are in line with the Central Electricity Authority’s capacity addition target of 78,577 mw for the Eleventh Plan, the company said here. Bhel Tiruchirappalli, which has achieved a record turnover of Rs 4,607 crore during fiscal 2006-07 with an all-time high profit before tax of Rs 872 crore, has now spruced up its construction activity to complete the second phase of its capacity augmentation scheme at an investment of
Rs 732 crore.
The second phase of expansion will be completed by March 2009, said a senior official of the company. The first phase was completed within a very short period at an estimated cost of Rs 190 crore, the official added.
According to the official, Bhel is setting up facilities to make 800 mw/1,000 mw super critical boilers at its Trichy plant.
The on-going phase-II will now focus on raising the overall installed capacity through the introduction of 75 types of high productive machines, the official said.
The total covered shop floor area, with associated office buildings, machinery, material handing, testing and support facilities added in the two phases will be around 1.25 million sq ft (around 1,12,000 sq m), the official added.
Reported at: http://www.financialexpress.com/news/Bhel-plans-capacity-expansion-in-Trichy/287669/
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