Thursday, September 18, 2008

BHEL To Increase Manufacturing Capacity To 20,000 MW

Bharat Heavy Electricals has revealed that the company, in the coming three fiscals, will enhance its manufacturing capacity to 20,000 MW from the current 10,000 MW.

According to the sources, the company expects to reach the 15,000 MW manufacturing capacity mark by this year-end.

While commenting on the plan, Mr. K Ravi Kumar, CMD, BHEL said, “Attention is also being given to rebuild and retrofit existing facilities to enhance their life, accuracy and productivity through additional investment.”

The sources also disclosed that the company has inked MoU with Tamil Nadu Electricity Board for forming a joint venture to build a 2x800 MW supercritical thermal power project.

Its also learnt that the company has entered into another MoU with NTPC to form a joint venture for jointly executing EPC projects and power equipment manufacturing.

The company's turnover reached Rs 21,401 crore, posting a growth of 14.2 percent and net profit soared 19 percent over the previous year's to Rs 2,859 crore.


Source:
http://www.topnews.in/bhel-increase-manufacturing-capacity-20000-mw-268594

Tuesday, September 9, 2008

BHEL wins turnkey project in Tripura

Outbidding Alstom India in international competitive bidding (ICB), State-run Bharat Heavy Electricals Limited (BHEL) on Tuesday announced that it had won a contract for setting up a combined cycle power plant (CCPP) in Tripura on a turnkey basis involving supply and commissioning of two fuel-efficient advanced-class Frame 9FA gas turbines.

Rs. 2,200-cr. contract


The value of the contract is around Rs. 2,200 crore and the gas turbine-based CCPP is to be installed at Pallatana in Udaipur district of Tripura. The order has been placed on BHEL by ONGC Tripura Power Company Limited (OTPCL), a joint venture of ONGC, IL&FS and the Tripura Government. On commissioning, the project is expected to transform the power scenario of the entire North-Eastern region and act as a catalyst for its rapid economic development.

Officials said the order comprises two combined cycle modules (363.3 MW each) with a gross plant output of 726.6 MW. While the first block will be completed in 42 months, the second block is slated for completion in a tight schedule of 45 months, considering the critical transportation route through the North-Eastern States.



source:
http://www.hindu.com/2008/09/10/stories/2008091056201800.htm

Sunday, September 7, 2008

BHEL to invest in castings & forgings facility

Bharat Heavy Electricals on Sunday said it will invest Rs 1,400 crore to build a manufacturing facility for castings and forgings, key components for power equipment.

BHEL has also formed a 50:50 joint venture company with Heavy Engineering Corporation (HEC) to cater to the needs of castings and forgings.

The new JV company would manufacture some of the castings and forgings required by the two units of HEC, Heavy Machine Building Plant (HMBP) and Heavy Machine Tools Plant (HMTP).



Source:
http://www.hindu.com/thehindu/holnus/006200809080323.htm

Friday, September 5, 2008

Bhel to plug into overseas M&A biz unit again

Bhel has decided to revive its plans for setting up a dedicated unit for overseas acquisitions. The public sector company is in talks with global advisors such as PricewaterhouseCoopers, Ernst & Young, and KPMG for appointment of a consultant for the unit.

Bhel plans to zero in on small and medium-sized companies abroad. The PSU had a separate unit for this purpose earlier, but it failed to make an acquisition.

Bhel CMD Ravi Kumar confirmed the company is planning to revive its unit meant for overseas M&A activity, but refused to divulge details. “We’ve not earmarked any amount for our M&A activity. We felt a need to appoint global consultants as were not able to make inroads on our own,” he said.

The company faces territorial restrictions because of its collaborations with global players like GE and Siemens. Therefore, it is felt that overseas M&A will provide it the leverage to explore the global markets. Territorial restrictions do not allow Bhel to sell its products in markets where its collaborators are active.

“The separate business unit will be a centralised group based in New Delhi which will work in tandem with the selected global consultant. It will be a focused group that will take care of due diligence and other M&A procedures.

Acquisition will be, however, made by the unit which has synergy with the target company. So, if we are acquiring a boiler unit, it will be our Trichy unit which will be acquiring this company,” a senior Bhel official said.

Bhel will focus on acquiring new technologies, market access and product development. “It’s not just the power equipment business. We are also looking at companies in the rigs business and defence equipment,” the official said.

Bhel is looking at increasing its presence in West Asia, Europe and Africa

source:
http://economictimes.indiatimes.com/News/News_By_Industry/Bhel_to_plug_into_overseas_MA_biz_unit_again/articleshow/3450361.cms

Thursday, September 4, 2008

ICICI Ventures, IL&FS likely to pick stake in NTPC-BHEL JV

ICICI Ventures and IL&FS -- are likely to pick up 50 per cent stake in the NTPC-BHEL joint venture, which was floated in April this year to manufacture power equipment.




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"We are meeting IL&FS and ICICI Ventures representatives on September 10. We will see that how much they can invest in this joint venture company," Minister of State for Power Jairam Ramesh told PTI.

At present, the two Navratnas PSUs have 50 per cent equity each in joint venture NTPC-BHEL Power Projects (NBPPL). The new entity will have a capacity of 5,000 mw per annum by 2014-15 at an investment of Rs 6,000 crore.

BHEL's former Director (Engineering) C P Singh has been appointed as Chairman and Managing Director of NBPPL.

The objective of setting up this JV company is to undertake engineering, procurement and construction (EPC) contract for power plants and manufacture equipments like turbine generators and boilers.

In a communique to the both Navratnas, the Power Ministry has clearly mentioned that the JV would not be government company and the process for bringing in more partners would start immediately.

The ministry made it clear that for achieving enormous managerial, commercial and technological flexibility, there is need of private partners to make it a private company. Despite being Navratna companies, NTPC and BHEL do not enjoy the managerial, commercial and technological flexibility, it added.

source:
http://www.business-standard.com/india/storypage.php?tp=on&autono=46017

Wednesday, September 3, 2008

NTPC and BHEL JV to sell 50% stake

September 04, 2008


NTPC and BHEL JV to sell 50% stake
BL reported that NTPC and BHEL Power Projects Private Limited a newly formed JV between state owned equipment maker Bharat Heavy Electricals Limited and power generation major NTPC Limited plans to sell up to a 50% stake to private companies.

BHEL and NTPC currently hold equal stakes in the JV that was formed in April this year to produce power equipment and build power stations in India and abroad.

A statement from BHEL said that “NTPC BHEL Power is planning to dilute its shares up to 50% with a view to inviting private partners to improve overall effectiveness and efficiency.” The statement did not provide any timeframe for the stake sale or the amount of money that will be raised through the transaction.

The release said that NBPPL will have a capacity of 5,000 MW a year by 2014-15 at an investment of INR 6,000 crore. It also said that Mr CP Singh director of BHEL’s has been appointed as the CMD of the JV Company.




Source:
http://steelguru.com/news/index/2008/09/04/NjE0Mzk%3D/NTPC_and_BHEL_JV_to_sell_50%252525_stake.html

Tuesday, September 2, 2008

BHEL Plans to set up Locomotive plant

Bharat Heavy Electricals (Bhel) will now set up a greenfield project for manufacturing locomotives in the country. It is already in talks with global majors such as French train maker Alstom, German rail transit solutions firm Bombardier Transportation GmbH, Siemens and General Electric for forming a joint venture. Bhel proposes to offer 49 per cent equity to its partner in the new venture. The project will start with an initial investment of Rs 1,000 crore.

The move comes after Bhel decided to bid for the tender floated by Indian Railways to procure 660 electric locomotives, at an estimated cost of Rs 25,000 crore. Bhel is already looking to tie-up with a foreign locomotive manufacturer to set up an electric locomotive factory in Madhepura, eastern Bihar. “This greenfield project will be a new venture. We’ve a board meeting on September 17, where the issue of offering 49% in the JV will be discussed. We’re already in talks with some international players and will announce the JV by end of this month,” a Bhel official confirmed.

The company has already identified two locations Bhopal in Madhya Pradesh and Vizag in Andhra Pradesh where this project will be set. The new JV will ensure an initial investment of Rs 1,000 crore, which may further be increased.

More at :

http://economictimes.indiatimes.com/News/News_By_Industry/Transportation/Railways/Bhel_plans_to_set_up_locomotive_plant/articleshow/3433764.cms