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

Time not ripe to bring BHEL FPO, says Praful Patel

The time is not ripe to bring the follow-on public offer (FPO) of state-run BHEL and the proposal needs to be examined again, Heavy Industries Minister Praful Patel said today.

"Disinvesting from public sector without finding its true value would be foolish. At this stage, the market sentiment is generally a little slow and specially for power and related sectors," Patel told reporters on the sidelines of a Standing Conference of Public Enterprises award function here.

He said the government would re-examine the proposal in a couple of months.

ref:
http://economictimes.indiatimes.com/markets/ipos/fpos/rights-issues/time-not-ripe-to-bring-bhel-fpo-says-praful-patel/articleshow/12650870.cms

BHEL likely to hike R&D spend

BHEL has spent Rs 1,162 crore on research and development during 2011-12. This translates to 2.3 per cent of the company’s total turnover, which was Rs 49,301 crore.

The value of in-house developments from this R&D inputs was pegged at Rs 9,512 crore.

The Corporate R&D at Hyderabad, which drives the entire research activity of BHEL, also filed 351 claims for intellectual property rights. These include 143 patent applications, 206 for copyright and two for design.

Giving these details at a news conference today, Dr S. Sekhar, General Manager of the Corporate R&D, said BHEL was putting in place a strategic plan 2017. The idea was to ensure sustainable growth during 2012-17.

The spend on R&D is expected to go up to 2.5 per cent or cross Rs 2,000 crore with the overall target set at Rs 1,01,600 crore by 2017.

ref:
http://www.thehindubusinessline.com/companies/article3307029.ece?homepage=true&ref=wl_home

BHEL to cut hirings by half !

Bharat Heavy Electricals Ltd (Bhel), which has been hiring over 4,000 youngsters every year since the last five years mainly from the engineering stream, will be recruiting only 2,200 freshers at the most this year.

Bhel director (human resources) R. Krishnan told Mail Today that the target for increasing its workforce to the current level of 49,000 employees for meeting expansion plans of the bluechip firm had been fulfiled with the hiring of 20,000 employees over the last five years. As many as 4,771 freshers were recruited in the year ended March 31, 2012.

more at:
http://indiatoday.intoday.in/story/bhel-to-cut-its-hirings-by-half/1/183625.html

BHEL 'willing' to continue with Tamil Nadu on Udangudi JV

Energy-related engineering and manufacturing enterprise Bharat Heavy Electricals Ltd (BHEL) has approached the Tamil Nadu government to reconsider its decision on cancelling a joint venture (JV) for the Rs 8000-crore Udangudi power project in downstate Tuticorin.

"We have written to the state government that we have enhanced our capacity to 20,000 Mw. So, considering our order-book size, we can complete the project within the set target of December 2015 if the job is given to us," said A K Ghosh, chief executive officer of the state-owned BHEL's power sector (southern region), called PSSR. He was speaking to reporters after announcing the performance results for PSSR, which handles the erection, commissioning and servicing of the 1953-founded company's power projects in southern part of the country.

In February this year, Tamil Nadu had announced its decision to dissolve the JV it had with Bhel to set up the 1600-Mw Udangudi power project.

This, Chief Minister J Jayalalithaa said, was considering a lack of progress in the project after the signing of the memorandum of understanding for the project way back in 2007

more at:
http://business-standard.com/india/news/bhel-willing-to-continuetamil-naduudangudi-jv/470637/

BHEL plans to expand solar PV manufacturing line

Power equipment maker Bharat Heavy Electricals Ltd (BHEL) is expanding its solar photo-voltaic module manufacturing unit with an investment of Rs 20 crore.

BHEL proposes to increase its solar cell and module manufacturing line from 8 MW to 26 MW capacity by September this year, Mr G. Ganapathiraman, Executive Director – Electronics Division, BHEL said. The company promises a module efficiency of over 18 per cent, he added.

This expansion of crystalline PV module manufacturing unit comes at a time when there is a glut of modules in the country. However, with several solar power producers importing thin-film modules as they are cheaper, there are few takers for PV modules.

In 2011-12, the electronics division of BHEL commissioned about 15 MW of solar power projects across the country. Currently, the solar segment of the electronics division contributes about 10 per cent.

BANGALORE UNITS' PROFIT UP 13%

more at:
http://www.thehindubusinessline.com/companies/article3291148.ece

Bangalore's BHEL posts Rs 1,028 crore PBT in FY12

The Bangalore-based divisions of the Navratna PSU, Bharat Heavy Electrical Ltd (BHEL), have posted Rs 1,028 crore Profit Before Tax (PBT) during 2011-12, the company said today.

The Electronic Division, Ceramic Business Unit (CBU) and Industrial System Group -- the three divisions coming under the Bangalore's BHEL -- have recorded a turnover of Rs 3,737 crore during 2011-12, up by 21 per cent compared to previous fiscal.

"It has an outstanding order book of Rs 7,815 crore at the end of this financial year, which could sustain the company for the next two years. The order book is comfortable", BHEL Electric Division Executive Director G Ganapathiraman said.

While the Electronic Division (EDN) clocked a turnover of Rs 2,301 crore and its PBT stood at Rs 827 crore; Industrial Systems Group's turnover touched Rs 1,002 crore mark, with its PBT at Rs 140 crore; while the Ceramic Business Unit (CBU) witnessed a turnover of Rs 434 crore, recording a PBT of Rs 61 crore, he said.


ref:
http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/engineering/bangalores-bhel-posts-rs-1028-crore-pbt-in-fy12/articleshow/12570328.cms

BHEL to set up fabrication unit near Nagpur at a cost of Rs 1000 crore

Public sector power equipment maker BHEL will set up a fabrication unit at a cost of Rs 1000 crore in Sakoli, about 80km near here in adjoining Bhandara district, a top official said today.

"BHEL is in the process of acquiring 200 acres of land to set up a fabrication plant to meet its own requirement for electrical machines," K S Mathur, Head of BHEL Power Sector (Western Region) told reporters here.

He said the land acquisition from both Government and private parties was in an advanced stage and may be over during the current fiscal. After that, the company will start the work on the plant, which will cost Rs 1,000 crore.

more at:
http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/engineering/bhel-to-set-up-fabrication-unit-near-nagpur-at-a-cost-of-rs-1000-crore/articleshow/12558266.cms

Bhel RC Puram turnover at Rs 7,072 cr

Bharat Heavy Electricals Limited (BHEL), Ramachandrapuram (RC Puram), registered a 38 per cent jump in gross profit to Rs 1,838 crore for the year ending March, 2012, as compared with Rs 1,332 crore in the previous financial year even as revenues saw a modest growth during the period.

The unit’s annual turnover grew to Rs 7,072 crore in 2011-12 from Rs 6,653 crore in the previous year. The management termed the results as a year of consolidation following high growth registered in the first four years of the company’s five-year strategic plan.

The unit has formulated ‘Division Plan 2017’, covering strategies and action plans for the period 2012-17, under which it aims to double its turnover by 2016-17. The plan includes expansion of product offerings in the power sector apart from identifying new business areas including pipeline compressors (gas transportation), and concentrated solar thermal power, according to a company release.

ref:
http://www.business-standard.com/india/news/bhel-rc-puram-turnover-at-rs-7072-cr/470242/

BHEL registers Rs 49,301 crore turnover

The Bharat Heavy Electricals Ltd (BHEL) has recorded a turnover of Rs 49,301 crore during the 2011-12 fiscal, a top official said. Executive Director of Bhopal unit of BHEL S S Gupta told this to reporters here today. He said that there has been an increase of 19.4 per cent over BHEL's 2010-11 turnover. The earning per share during the last financial year was Rs 28.06 and this also indicated an increase of 21.2 per cent over the earning per share in 2010-11, he said. Gupta said that the R & D investment during the last financial year was Rs 1,162 crore, which was 18.3 per cent more than the investment in 2010-11. Gupta also said that he was of the view that the future electricity needs of the country could only be met through nuclear power plants. He added that although there were lots of coal reserves in the country, their quality was very poor. PTI AS NP

ref:
http://ibnlive.in.com/generalnewsfeed/news/bhel-registers-rs-49301-crore-turnover/982747.html

BHEL subsidiary posts 16 rise in turnover in FY12

Bharat Heavy Plates and Vessels Ltd (BHPV), a subsidiary of state-run power equipment maker BHEL, has recorded a turnover of Rs 158.35 crore during 2011-12, an increase of 15.6 per cent over Rs 136.97 crore posted during the last fiscal. The profit after tax (PAT) was Rs 9.03 crore as against Rs 8.77 crore during 2010-11, BHPV Managing Director A S Nagaraja said in a statement here. The Rs 235-crore modernisation scheme at BHPV, funded by BHEL, was firmly on track and this would help in achieving sustained growth and profitability in the years to come, he said.

ref:
http://ibnlive.in.com/generalnewsfeed/news/bhel-subsidiary-posts-16-rise-in-turnover-in-fy12/983334.html

Ranipet BHEL turnover crosses Rs.4,200-cr mark

The Boiler Auxiliaries Plant (BAP) of Bharat Heavy Electricals Limited (BHEL) at Ranipet achieved a turnover of Rs.4,210 crore during 2011-12, according to T. N. Veeraraghavan, Executive Director, BHEL, Ranipet.

Addressing A press conference here on Thursday, Mr. Veeraraghavan said that the plant achieved a profit before tax of Rs.1,260 crore.

The Ranipet plant designed and erected, for the first time, the tallest 80-metre steel chimney at Indian Oil Corporation's refinery in Barauni. A salient feature of the BAP's performance last year was the in-house development of large-size air pre-heaters (APH) for 660 MW super critical thermal sets.


more at:
http://www.thehindu.com/business/article3284579.ece

BHEL Bhopal FY12 profit up at Rs 801 cr

The Bharat Heavy Electricals Limited (BHEL) Bhopal unit has clocked a turnover of Rs 4,780 crore in the last fiscal. SS Gupta, executive director, BHEL Bhopal, said the unit's profit before tax (PBT) rose 15% to Rs 801 crore during the fiscal 2011-12 as compared to Rs 696 crore the previous year.

The unit's turnover jumped 19% at Rs 4,778 crore as compared to Rs 4,208 crore the previous year, Gupta said.

more at:
http://timesofindia.indiatimes.com/city/bhopal/BHEL-Bhopal-FY12-profit-up-at-Rs-801-cr/articleshow/12541016.cms

Bhel withdraws FPO, net rises 14%

State-run power equipment manufacturer Bhel on Tuesday said it has withdrawn the initial papers for a follow-on offer filed with the markets watchdog, even as it posted a 14% rise in net profit at Rs 6,868 crore in 2011-12 from Rs 6,011 crore in 2010-11 on the back of higher operational efficiency.

"We received instructions from the department of disinvestment that the DRHP (draft red herring prospectus) has to be withdrawn," company chairman B P Rao said. He declined to elaborate on the reason for withdrawing the DRHP. Bhel had filed the DRHP last September for offloading 5% of its 67.7% stake in the company for Rs 4,000 crore.

more at:
http://timesofindia.indiatimes.com/business/india-business/Bhel-withdraws-FPO-net-rises-14/articleshow/12525681.cms

BHEL open to collaborations with Chinese firms

Bharat Heavy Electricals (BHEL), which is facing stiff competition from Chinese equipment makers, today said it is open for collaboration with companies from the neighbouring country.

In response to a query on whether the company would be open for collaboration with Chinese entities, BHEL Chairman and Managing Director B Prasada Rao said, "If it adds value to us, we are open to that".

Import of cheaper Chinese power equipment are impacting state-run BHEL which today posted a net profit of Rs 6,868 crore for the year ended March, 2012.
The government is looking at higher import duty on Chinese power gear to provide a level playing field for domestic manufacturers such as BHEL.

Announcing the annual results, Rao said the company is open for collaborations with the private sector.

"Definitely, we will be providing [help] if the private sector comes for help from us. Secondly, we are open for that [collaboration with private sector]," he noted.

more at:
http://business-standard.com/india/news/bhel-open-to-collaborationschinese-firms/162253/on

BHEL sets Rs 8,379-cr target for 2012-13

BHEL Hyderabad has set a target of Rs 8,379 crore for the financial year 2012-13, according to its new Executive Director, Mr R.K. Wanchoo.

The R.C. Puram unit of the power utility company achieved its highest-ever annual turnover of Rs 7,072 crore (provisional) for fiscal 2011-12.

In a communication to employees of the unit, Mr Wanchoo said manufacture of large-sized 270-MW generators and advance technology AC-based oil rigs were high on the agenda for the year.

The company secured orders worth Rs 774 crore for the supply of six sets of E-2000 oil rigs. Similarly, the R.C. Puram unit tied up with GE for advanced gas turbines and with MHI of Japan for pumps for supercritical applications

Mr Wanchoo said a new division has been created to undertake erection and commissioning of gas-based projects. This will supplement the products being manufactured at the existing units with respect to their marketability. The necessary experienced manpower would be inducted.

Though the order is good, the big challenge ahead is to address issues of reduction in price and delivery time quickly to take lead in the competitive market, he said.

ref:
http://www.thehindubusinessline.com/companies/article3272758.ece?homepage=true&ref=wl_home

Supervisor Trainee (HR) Recruitment open till 17 April 2012

Diary Dates:

Commencement of on-line submission of applications: 27th March, 2012.

Closing of on-line submission of Applications : 17th April, 2012.

Last date of receipt of Ack. Slips at BHEL: 1st May, 2012.

Last date of receipt of Ack. Slips from far flung area/North East : 8th May, 2012.

Acknowledgement slip along with Challan (If applicable) and relevant documents are to be sent to:
AGM (HR)
BHEL – EPD
Prof C N R Rao Circle,
Opposite IISc, Malleshwaram
Bangalore – 560012


ref:
http://careers.bhel.in/hrlive/jsp/st_eng_index.jsp

ET's recruitment result declared

Provisional Offer of Appointment are now available for downloading. For doing so, please go to Latest Status page .

http://careers.bhel.in/etrlive/jsp/et_eng_index.jsp