BHEL expecting turnover of Rs 45,000 cr by 2012

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BHEL expecting turnover of Rs 45,000 cr by 2012

AK Puri, CMD, BHEL said that their order book as on July 1 stood at Rs 62,400 crore. He added that they expect to bag a major part of the 11th plan orders. According to Puri, BHEL’s FY09 turnover may be in excess of FY07. He added that over the next few years they see a growth CAGR of 18-20%.

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Q: What is the status on the ultra mega power project, in particular the Krishnapatnam project? What is the nature of the orders that you have received or are expecting to receive?

A: There are nine ultra mega power projects, which were identified at the beginning. I believe there is one more being added. All in all, there are 10 ultra mega power projects, each with a capacity of 4,000 mw. We are talking about 40,000 mw, to be available over next 12-18 months period.

Only the first two has been awarded so far. So, there is going to be a hectic activity, as far as ultra mega power project is concerned. There is no single manufacturer in the world, who can cater to 40,000 mw in such a short period of time. So, we need to strategize and pick and choose which project will suit our capacities and capabilities better and take care of our capacity situation.

As far as preparedness is concerned, we are already ramping up our capacity and capability. We have also tied-up for super critical technologies, which are suitable for these ultra mega power projects. I must add that there are going to be several other projects, which will require super critical technology.

We are looking at the total pie and will be bidding for some of these ultra mega as well as super critical technology- based power projects suiting our capacity and capability requirements. We expect to strike the first success within the next 6-12 months period.

I must add that not much has happened so far. Only two projects have gone through and real activity and super critical technology will begin in next 12 months period.

Q: Has anything come forward, in the form of bidding for equipment?

A: Only one has gone, Tata's Mudra Project, where the equipment has been tied-up as per report. As for the other one, the equipment is in the process of being tied-up.

Q: To what extent can you implement these super critical power projects. What is the capacity required for this and the total investment that you are spending behind these projects?

A: The capacity creation of 15,000 mw is taking into account the readiness to manufacture super critical equipment as well. As far as technology tie-ups are concerned, they are already in place. We are tied-up with the best in the world for boilers, with Alstom, and for turbine and generators, with Siemens. These technologies are flowing now. We are already getting our engineers trained. So we are ready to bid any new project that comes up for bidding now.