More worries on BHEL's order inflows

The stock of BHEL fell two per cent on Monday, after the Rajasthan Electricity Board scrapped a tender for supply of equipment and commission of plant. While the news may have little bearing on the company financially, this incident reinforces a larger risk of delays/cancellation of orders by beleaguered State Electricity Boards (SEB). State-run electricity board Rajasthan Rajya Vidyut Utpadan Nigam scrapped tenders worth Rs 12,000 crore for two projects of 660 MW each. BHEL was the lowest bidder in the project and BGR Energy Systems, reportedly, the second lowest. LOWEST BID While other SEB orders were delayed on these counts, the said project had received environmental clearance as well as fuel linkages. The scrapping of tender therefore, comes as a surprise. Guidelines issued by the regulatory authorise prevent the order from being awarded to the second lowest bidder. Hence, if a SEB does not wish to award the order to the lowest bidder, it may resort to scrapping the tender and starting afresh. But pricing does not appear to be the issue here. According to BHEL officials, the company's bid was 12 per cent lower than the second lowest bid. FINANCIAL DISTRESS This leads to the other possibility of the Rajasthan SEB suffering from financial crunch. Rajasthan, Tamil Nadu and Uttar Pradesh are known to be among the top loss-making electricity boards in the country. more at: http://www.thehindubusinessline.com/companies/article3371136.ece

Why BHEL is trading near its 52-week low of Rs 222

The Rajasthan government has scrapped tenders worth Rs 12,000 crore that were bagged by Bharat Heavy Electricals (BHEL) more than a year ago for two separate thermal power projects in the state. Reacting to the news, BHEL not only opened lower on the bourses but is currently trading down over 2 percent at Rs 224.35 on the BSE today. During trade, the stock also touched its 52-week of Rs 222 today. The cancellation letters were sent on April 25, 2012. The development comes at a time when BHEL is grappling with slowdown in its order book. Owing to an overall sluggishness in the power sector, the company’s order book more than halved to Rs 22,096 crore last fiscal compared to 2010-11 period. The cancellation of the tenders, which were in an advanced stage, have also come at a time when Rajasthan is facing severe shortages in power supplies. more at: http://www.firstpost.com/investing/why-bhel-is-trading-near-its-52-week-low-of-rs-222-292762.html

Rajasthan scraps Rs 12,000cr power project tenders won by BHEL

The Rajasthan government has scrapped tenders worth Rs 12,000 crore that were bagged by Bharat Heavy Electricals (BHEL) more than a year ago for two separate thermal power projects in the state. Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RVUN), a state government company, has scrapped EPC (Engineering, Procurement and Construction) tenders for upcoming new super critical units of Suratgarh and Chhabra thermal power stations, sources said. RVUN cancelled the separate tenders floated for two 660 MW units -- each for Suratgarh and Chhabra, respectively, without specifying any particular reasons, sources added. When contacted, BHEL officials said that no reasons have been assigned by RVUN for cancelling the tenders and the company was trying to get in touch with RUVN for ascertaining the same. Bharat Heavy Electricals Ltd (BHEL) had emerged as the lowest bidder for the Rs 12,000 crore worth tenders, sources said. The second lowest bidder was BGR Energy. ref: http://economictimes.indiatimes.com/news/news-by-industry/energy/power/rajasthan-scraps-rs-12000cr-power-project-tenders-won-by-bhel/articleshow/12921352.cms

Four BHEL employees win Shram Bhushan Award

The slew of awards that BHEL, Tiruchi, won during 2011-12 includes the prestigious Prime Minister's Shram Bhushan Award notched by four employees. The employees of the High Pressure Boiler Plant (HPBP): S.Karuppiah, General Technician; R.Jagadeesan, Deputy Engineer; A.Veerappan, Supervisor Trainee; and S.Raja, Assistant Engineer Grade – I won the award carrying a cash prize of Rs.1 lakh for the first time in the Plant, by designing and fabricating a welding electrode holder with modified handle for productivity improvement in shielded metal arc narrow gap welding, the annual report states. Three teams of employees won the Vishwakarma Rashtriya Puraskar. S. Paramasivam, Assistant Engineer, Grade – II; and M.Balu, T.Muthukumar, and K.Janakiraman, Grade III Artisans, received the class-A award carrying cash prize of Rs.75,000 and merit certificates for reducing the cycle-time for bending re-heater coils. Another Class-A award was won by P.Krishnan, Assistant Engineer, Grade II; S.Arunkumar and P.Thanigaiyarasu, Grade III Artisans; and S.Arun Kumar and R.Manikandan, Grade IV Artisans, for reducing the cycle-time in hydro-test of quick closing non-returning valves. Lucky Gaur, Assistant Engineer, Grade II; V. Narayananasari, Master Technician; and K.Ilavarasan and D.Selvaraju, General Technicians, won the Class-C Award carrying cash prize of Rs.25,000 and merit certificates for productivity improvement through the use of advanced friction stir welding technology in the existing vertical milling machine. ref: http://www.thehindu.com/news/cities/Tiruchirapalli/article3355865.ece

BHEL may make ‘Bofors-equivalent’ guns for the Army

Bharat Heavy Electricals Ltd (BHEL), which is already making supplies of 76 mm and 127-mm guns to the Indian Navy, said it was looking at producing “Bofors-equivalent field guns for the Indian Army” with appropriate technology selection by the ministry of defence (MoD). “After our successful stint with the Indian Navy to supply guns for ships, we are now in talks with the defence ministry to manufacture Bofors-equivalent field guns for the Indian Army,” BP Rao, CMD, BHEL, told Hindustan Times. “Depending on the technology they (MoD) select, we area ready to manufacture these guns at our Haridwar factory where we have a separate manufacturing set up for guns,” said Rao. ref: http://www.hindustantimes.com/business-news/WorldEconomy/BHEL-may-make-Bofors-equivalent-guns-for-the-Army/Article1-846696.aspx

BHEL launches logistic service to North-East

The eastern region office of Bharat Heavy Electricals Ltd (BHEL) has taken a new initiative by starting to provide logistics and multi-modal transportation in an integrated manner to the remote areas, thus making it possible to implement large projects there.

M. Rajeev Kumar, Executive Director (ER), told The Hindu that starting with the major gas-based project at Palatona in Tripura's capital Agartala, BHEL Power Sector Eastern Region was now geared to provide this service to other regions too. “What started out of compulsion has now opened windows of opportunity,” he said.

Altogether 190 consignments had to be moved for the implementation of the 2x363.3 MW gas-based project, billed among the largest in India. The project is coming up as a joint venture of ONGC and the Tripura Power Development Corporation in which IL&FS also has a stake.

The equipment for this project was supplied by various manufacturing units of BHEL. There were also some imported components from Siemens, Germany, which could not be transported through road alone. So the Central Government signed a treaty with the Bangladesh Government to get permission to use its road and waterways (but not its bridges).

“This project may not have been possible and certainly would have been delayed by a year had we tried to move it through Assam”, he said as movement through hilly terrains was needed.

more at:
http://www.thehindu.com/business/companies/article3315110.ece

BHEL to manufacture rigs for ONGC

After a gap of almost eight years, the Bharat Heavy Electricals Limited (BHEL), Ramachandrapuram unit, is getting ready to build E-1700 rigs that will be used for onshore drilling by the Oil and Natural Gas Corporation (ONGC). Each rig will approximately cost Rs. 129 crore.

The orders were placed in January 2012 and the first rig will be handed over in July 2013 after testing and verification by a third party.

ONGC had placed orders for six rigs worth about Rs. 775 crore. The oil rig division of the BHEL was entrusted with the job, which was so far busy with power plants related business.

ONGC, which earlier took rigs on lease, changed its plans and place orders with BHEL for 2000 HP AC deep drilling rigs.

more at:
http://www.thehindu.com/news/states/andhra-pradesh/article3311582.ece