Press Release


03-Feb-2009

BHEL and KEL to form JV for manufacture of products for Railways and Industries; Strategic move to enhance BHEL's presence in the Transportation, Industrial and Renewable Energy Sectors

Bharat Heavy Electricals Limited (BHEL), the largest engineering and manufacturing enterprise in India in the energy-related infrastructure sector and Kerala Electrical and Allied Engineering Company Limited (KEL), a Govt. of Kerala undertaking have signed a Memorandum of Understanding (MoU) for setting up a Joint Venture (JV).

Aimed at synergising the complementary strengths of the two public sector engineering companies, the JV will cater to core sectors like transportation, industries and renewable energy by manufacturing a specific range of products including traction and oil rig alternators, induction motors, traction auxiliary machines and wind electric generators, at KEL, Kasaragod.

In the presence of Sh. Sontosh Mohan Dev, Hon’ble Union Minister for Heavy Industries and Public Enterprises; Sh. Jairam Ramesh, Hon’ble Union Minister of State for Commerce and Power and Sh. Elamaram Kareem, Hon’ble Minister for Industries and Commerce, Govt. of Kerala, the MoU was signed here today by Mr. K. Ravi Kumar, Chairman and Managing Director, BHEL, and Mr. B. Jyothikumar, Managing Director, KEL. Sh. T.K.A. Nair, Principal Secretary to the Prime Minister; Dr. Satyanarayana Dash, Secretary, Ministry of Heavy Industries and Public Enterprises and Sh. Amitabh Kant, Principal Secretary & Special Commissioner, Govt. of Kerala, also graced the occasion.

Directors on the Board and other senior officials of BHEL, KEL, Ministry of Heavy Industries and Public Enterprises and Govt. of Kerala, were also present.

Expressing his happiness at BHEL’s progress in preparing itself to meet the ever increasing requirement of building infrastructure by expanding its capacities in power, transportation and industrial systems, Sh. Sontosh Mohan Dev said in his address, that the company has been a key supplier to Indian Railways for their traction propulsion equipment as well as rolling stock, over the last four decades.

The minister said that today, more than two-thirds of the rolling stock of Indian Railways is powered by BHEL supplied propulsion equipment. In the XIth plan period, Indian Railways is looking at expanding its capacities for rolling stock as well as track network. The construction of the dedicated freight corridors along the golden quadrilateral and its diagonals will call for huge demand of additional rolling stock and associated equipment. I am sure that the alliance between BHEL and KEL, Kasaragod will help Indian Railways as well as Industry and be a vehicle for growth for both the organisations, he added.

Earlier, in his address, Mr. K. Ravi Kumar, CMD, BHEL said that having already installed over 100,000 MW of power generating capacity worldwide, BHEL did not just limit itself to the power sector but also made equally important contributions in the field of transportation, power transmission and industry. Over 19,000 electrical machines, 72,000 traction machines and 15,000 power and instrument transformers have been supplied by BHEL, so far. In the area of transportation, BHEL is the leading supplier of traction equipment and electric locomotives to Indian Railways. The company is gearing up to meet the emerging demand in the transportation segment, which is expected to grow exponentially due to the Railways’ plans for capacity enhancements both in rolling stocks as well as Rail network, he said.

The CMD further said that the KEL’s Kasaragod unit is manufacturing brushless alternators since 1990 under technical collaboration with Leroy Somer, France and has a very good market share in supply of brushless alternators for use in DG sets for power cars. KEL has also designed and manufactured Brushless Alternators for traction and industrial applications. BHEL sees a strategic fit with KEL Kasaragod, particularly for the requirement of Alternators for DEMUs, oil rigs and shunting locomotives, he added.

Mr. Ravi Kumar said that the technology and capabilities of KEL Kasaragod have been asessed and we are confident that a definite synergy exists between both organisations to form a joint venture and expand the product mix to include products like induction motors (up to 300 kW), wind electric generators (600 kW), etc. for manufacture by the proposed joint venture. BHEL will like to provide necessary technical and managerial support to ensure that the proposed joint venture can be optimally utilised and made a viable and profitable unit fostering growth for BHEL and KEL, said the CMD.

BHEL has been committed to the nation’s infrastructure development programme and has reaffirmed its commitment to the Indian infrastructure sector by equipping itself for the future, by way of technology, facilities and trained manpower.





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