Bhel, NTPC Forge Indian Power Market Alliance

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Researched by Industrial Info Resources (Sugar Land, Texas)--State-owned Bharat Heavy Electricals Limited (Bhel) (New Delhi, India) has won an $850 million contract to supply two 500-megawatt (MW) units for the Anpara D thermal power station in Uttar Pradesh. The scope of the contract covers design, engineering, manufacture, supply, erection and commissioning of boiler turbine packages along with associated auxiliaries, balance of plant and civil works.

The contract was awarded by the state's Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited, which had ordered two 250-MW turbine units from Bhel for the Parichha and Harduaganj power stations. Bhel has commissioned a total of 10,000 MW of power generation capacity in Uttar Pradesh.

To date, Bhel has booked orders for 64 units of 50-MW turbine sets and one of 600 MW. Thirty-three of these orders have already been commissioned. The company is about to introduce 800-MW supercritical power units and has the capacity to move to the production of 1,000-MW units suited to Indian conditions and coal supplies. For related information, see January 15, 2008, article - India's BHEL Plans to Manufacture 56,000 Megawatts of Power Equipment by 2012.

In the first week of February, India's largest power-generation company, the state-owned National Thermal Power Corporation (NTPC), signed a memorandum of understanding with Bharat Forge Limited to set up a joint venture. The joint venture will manufacture castings, forgings, fittings and high-pressure pipes required for power and other industries, balance of plant equipment for power plants and equipment.

NTPC, which is associated with Bhel in selling into the greenfield power generation market, is waiting for the official go-ahead to have its ceiling for bidding on power utilities raised above the $250 million mark. This will enable the company to invest $650 million in large projects needing a total investment of $2 billion or more. For related information, see September 21, 2007, article - NTPC - BHEL Joint Venture Forms Indian State Owned Integrated Power Monolith.

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