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BHEL planning Rs 1,600 crore investment

BHEL is expected to add 34,000 MW power of fresh generating capacity in the 10th plan (2002-2007).

india Updated: Aug 29, 2006 14:26 IST

State-owned engineering major, Bharat Heavy Electricals Ltd on Tuesday, announced its roadmap for expanding power equipment manufacturing capacity to 10,000 MW annually at an investment of more than Rs 1,600 crore.

"The manufacturing capacity of 10,000 MW is intended to meet the present indications of the likely power capacity addition target in the 11th plan (2007-2012) of over 62,000 MW," BHEL said.

BHEL is investing more than Rs 1,600 crore to modernise and expand capacity of its facilities, it said, adding the enhanced capacity would become available by 2007.

In the 10th plan (2002-2007) nearly 34,000 MW of fresh generating capacity is expected to be added, of which BHEL's contribution would be about 19,500 MW, which is well within its present production capacity, the company said.

BHEL would be more than willing to further enhance its capacity even beyond 10,000 MW to the levels required by the country's power sector, it said.

In the current expansion programme, the focus is on adding facilities for various products in its manufacturing units and for construction tools and equipments for erection and commissioning services at customer project sites.

This plan is in the nature of brownfield expansion and would add mainly work centre capacities. This approach has a strong economic rationale both in terms of time as well as cost-benefits, the company said.

BHEL has large accumulated reserves and surplus in addition to its leveraging capacity to raise resources from the market and can fully meet the resource requirements on its own, the company said. 

Introduction of higher rating hydro turbine generator sets and advanced class gas turbines have been planned to cater to the upcoming market requirements. Besides, the company is ready and equipped to be a part of the emerging opportunities in nuclear power generation, the company said.