BHEL to step up focus on EPC segment as power plants falter

The state-run Bharat Heavy Electricals (Bhel), with a view to protect its profitability, is planning to focus on providing total engineering solutions for power plants as new power projects are hardly coming up due to fuel availability concerns. "Given the current power sector scenario where not many projects are coming up mainly due to limited availability of fuel, we plan to focus on providing complete engineering solutions to our customers," Bhel Executive director (Tiruchirappalli unit) AV Krishnan told reporters here during a media tour.

The equipment manufacturer had in 2001 inked a pact with state-run Engineers India (EIL) to cooperate in identified areas of business having synergy of operations and providing EPC (engineering, procurement and construction) services. "We had entered into a pact with EIL to provide engineering solutions as the power sector was not so lucrative then. But when the sector started looking attractive, we decided to focus on the core BTG (boiler, turbine and generator) business. However, given the current scenario, we need an insurance, which we expect to get from EPC services," he said. The company has also written to EIL on its intentions to get back into the role of services provider.

Currently, the EPC segment contributes to nearly 30 percent of Bhel's turnover. Bhel, which is mainly involved in manufacturing boilers, turbines and generators, is also planning to develop balance-of-plant (BoP) materials, which are required for the completion of a power plant such as tubes, ash-handling systems and AC ventilators among others.