BHEL to invest Rs 1,000 crore in Tiruchi plant

The state-run power equipment-maker BHEL says it would invest Rs 1,000 crore in its Tiruchi plant in the current fiscal to increase the boiler capacity.

State-run power equipment-maker Bharat Heavy Electricals Ltd on Thursday said it would invest Rs 1,000 crore in its Tiruchi plant in the current fiscal to increase the boiler capacity.

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"We are planning to invest Rs 1,000 crore in the Tiruchi plant to increase the boiler capacity from 5,750 MW to 10,000 MW by June-July '09," Bhel's Tiruchi Complex Executive Director, RN Misra said in New Delhi.

The current order book of Tiruchi plant stands at Rs 7,200 crore, "We would take this figure to Rs 17,000 crore in three years time," Misra said.

Bhel also plans to form joint venture with Tamil Nadu Electricity Board (TNEB) to build boilers, in which it would have 26 per cent stake. "The company has signed a Memorandum of Understanding with TNEB to form joint venture," Misra said.

The company is contemplating more joint ventures with other state electricity boards. The company has already designed 800 MW boiler, but the order for the same are yet to be placed.

Bhel and country's largest power producer NTPC Ltd formed 50:50 joint venture on April 29 last month to carry out engineering construction procurement contracts for power plants and infrastructure projects, manufacture and supply equipments in India and abroad.