BHEL Records Highest Order Volume from Private Power Utilities Sector

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Researched by Industrial Info Resources (Sugar Land, Texas)--Bharat Heavy Electricals Limited (BSE:500103) (BHEL) (New Delhi) received the organization's largest volume of orders to date from private power utilities for the fiscal year ended March 31, 2010.

Of the 16,489 megawatts (MW) of power plant equipment ordered from BHEL, independent power producers (IPPs) account for 14,689 MW of the orders. This amounts to nearly 90% of the total orders accepted by BHEL's power subsidiary. The orders add up to $7.3 billion.

BHEL recorded $3 billion of industrial sector orders in the past fiscal year, which represents 40% growth over the previous year. This increase covered the entire gamut of services and products in arenas pertaining to captive power generation, transportation, transmission, oil, gas, renewable energy and other industrial sectors.

Reportedly, BHEL recorded physical export orders worth an estimated $769 million in the fiscal year ended March 31, 2010. This was 9.4% higher than levels the year before, which is surprising, in view of the global economic recession.

According to recently released BHEL statements, the power sector will be on a growth trajectory during the 12th and 13th five-year plans. The company believes that the government is slowly beginning to focus on India's infrastructure. In a bid to turn to energy-saving technology and lower emissions, work related to thermal projects that use supercritical technology will gradually increase in the near future. The demand in the domestic arena for power plant equipment will see stiff competition, although BHEL is confident of retaining the company's reigning position.

BHEL intends to emphasize the use of low-carbon technologies. This will include ultra-supercritical plants, integrated gasification combined-cycle facilities and solar power, to name a few. The company intends to take a pioneering position in the development and deployment of advanced ultra-supercritical power plants. This will be under the proposed national mission for clean-coal technologies.

BHEL's Domestic Capacity Expansion:

• The company has an installed power equipment production capacity of 15,000 MW per year and plans to expand this capacity to 20,000 MW per year by March 2012.
• For supercritical equipment, it has set up state-of-the-art manufacturing facilities. The company also boasts a manufacturing facility for high-rating transformers--on par with its competitors.
• BHEL recently sourced 31 new cranes to lift its erection capability at different project sites.

BHEL's Global Forays:

• The company recorded physical export orders of an estimated $770 million.
• BHEL has ventured into Belarus.
• The company was awarded the contract for the 1,200-MW Punatsagchhu hydroelectric power project in Bhutan--the country's largest hydroelectric power project to date.
• The company secured its 21st consecutive transmission-equipment supply contract from Greek power company Public Power Corporation SA (ATH:PPC) (Athens).
• BHEL also set a new record for itself by commissioning 734 MW of power capacity in the international arena.

BHEL Projects Commissioned:

• In the fiscal year ended March 31, 2010, BHEL commissioned 6,583 MW of power plant equipment. Apart from 5,220 MW for utilities and 634 MW for captive power plants and industrial units, the commissioned capacity also included 729 MW in international markets. BHEL will commission 412 MW of hydroelectric power projects and is in the process of securing access to important inputs such as water and power evacuation systems.
• BHEL also commissioned the two 220-MW power units (units 5 and 6) at Kota in the western Indian state of Rajasthan, for the Rajasthan Atomic Power Project.
• On the international front, BHEL constructed and commissioned four power plants in a single year. While it commissioned major power projects in Bangladesh, Iraq, United Arab Emirates and Indonesia, the company also constructed and brought various substations online in Afghanistan, Ethiopia and Bangladesh.
• The Trombay thermal power station, which belongs to integrated power utility Tata Power Company Limited (BSE:500400) (Mumbai), was established by BHEL on an engineering, procurement and construction basis. For this project, the Indian government awarded BHEL India's National Award for Early Completion.

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