India's BHEL Secures $148 Million Contract for 270-Megawatt Bela Thermal Power Project in Maharashtra

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Researched by Industrial Info Resources (Sugar Land, Texas)--Bharat Heavy Electricals Limited (BSE:500103) (BHEL) (New Delhi) has secured a $148 million order to supply the main plant package for a thermal power project in Bela in the Nagpur district of Maharashtra. The order was placed by Ideal Energy Projects Limited (IEPL) (Nagpur, Maharashtra). IEPL has already acquired 101 hectares of land and all required clearances for the power project.

Under the terms of the contract, BHEL will design, engineer, manufacture, supply, install and commission the boiler, steam turbine and generator for the plant, as well as associated auxiliary equipment, control and instrumentation, and transformers. The plant is planned to be operational in December 2011.

BHEL is recognized as a leader in thermal power projects and manufactures thermal power units in a range of capacities, ideally suited for Indian conditions and using Indian coal. The firm's range of power generating equipment up to 1,000 megawatts (MW) of capacity has recently been upgraded to include units of 270 MW, 525 MW and 600 MW. A 270-MW unit will be installed at the Bela thermal power plant. BHEL has also enhanced its manufacturing capacity to 10,000 MW, and is proceeding with expansion work to increase its capacity to 15,000 MW with further plans to attain a target capacity of 20,000 MW by 2011-12.

In May, BHEL was awarded a $311 million contract by Korba West Power Company Limited (New Delhi) to supply a 600-MW thermal unit for the Avantha Bhandar thermal power plant in Chhattisgarh. In the past financial year, 2008-09, BHEL obtained several major contracts with a combined value of more than $2.7 billion to supply and install power generation units in a range of thermal power plant across the country.

BHEL secured a contract from Jindal Steel and Power Limited (BSE:532286) (Hissar, Haryana) to supply and install four units of 600 MW each at the Chhattisgarh thermal power plant. Jaiprakash Associates Limited (BSE:532532) (Noida, Uttar Pradesh) placed an order on BHEL for the supply of two units of 250 MW each for the thermal power plant at Bina. BHEL also won a deal to supply two 270-MW units for the Goindwal Sahib thermal power plant in Punjab from GVK Power and Infrastructure Limited (BSE:532708) (Secunderabad, Andhra Pradesh).

Other contracts won by BHEL include the supply of a 153-MW thermal unit for the Bhatinda captive power plant in Punjab from HMEL, a joint venture between the Hindustan Petroleum Corporation Limited (BSE:500104) (Mumbai) and Mittal Energy Investment Private Limited (Singapore), a subsidiary of ArcelorMittal (NYSE:MT) (Luxembourg).

Although the majority of the contracts are for the supply and installation of thermal power units manufactured by BHEL, it is interesting to note that the contract between BHEL and Hindalco Industries Limited (BSE:500440) (Mumbai) for the supply of boilers and turbines for the 900-MW Mahan project specifically requested that BHEL should not source components from China.

BHEL also secured a contract from Adani Enterprises Limited (BSE:512599) (Ahmedabad, Gujarat) for the supply of generator transformers for the 1,980-MW Tirora thermal power plant in Maharashtra. With other contracts, including orders placed by Tata Power Company Limited (BSE:500400) (Mumbai) and Associated Cement Companies Limited (BSE:500410) (Mumbai), BHEL has established a total installed power generation capacity of 87,646 MW, amounting to nearly 64% of India's total installed capacity of 138,175 MW of power.

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