BHEL to invest Rs.32,000 Million on Expansion drive to meet the country’s Power forecast in the Eleventh Plan

Aimed at equipping itself to meet the country's power capacity addition targets towards the agenda of providing ‘Power to all by 2012’, Bharat Heavy Electricals Limited (BHEL) has embarked upon a very ambitious plan of enhancing its manufacturing capacity to 15,000 MW per annum with a total investment of around Rs.32,000 Million, for the Eleventh Five Year Plan.

In addition to holistic modernization of facilities, the company will augment its capacity by a massive 250% from 6,000 MW to 15,000 MW per annum. Presently, BHEL is in the process of enhancing its manufacturing capacity from 6,000 MW to 10,000 MW per annum at a cost of Rs.12,000 Million and the enhanced capacity of 10,000 MW will be available by the end of 2007.

The enhanced manufacturing capacity, together with state-of-the-art technology to produce higher rating super-critical thermal sets and a skilled workforce will further strengthen the position of the company in the domestic market. With this, BHEL has once again reaffirmed its commitment to the Indian Power Sector by equipping itself for the future to meet the country’s power forecast for the Eleventh Plan and beyond.

In the past, BHEL has always taken advance action and put in place capacities to meet the country's power plant equipment needs. In the Sixth five-year plan itself, a production capacity of 6,000 MW had been established by BHEL, which was more than adequate for the country’s power capacity addition programme.

The installed Power capacity base in the country is expected to witness an addition of around 1,50,000 MW during the Eleventh and Twelfth Plans. The manufacturing capacity of 10,000 MW is intended to meet the present indications of the likely power capacity addition target of the Eleventh five year plan (2007-2012) with the increased capacity of 15,000 MW taking care of the latter half of the Eleventh Plan.

The focus of the initiative is on addition of facilities for various products in its manufacturing units and for construction tools and equipment for erection and commissioning services at project sites. Aimed at meeting customer commitments and enhanced market demand, the programme will also look at replacement of ageing facilities for improving product quality, reducing cost and cycle time and enhancing productivity, besides modernizing and upgrading equipment at various power plant sites for meeting enhanced erection load and shorter commissioning schedules.

Significantly, this programme envisages brownfield expansion, adding mainly work centre capacities. Compared to setting up greenfield facilities, brownfield expansion can be undertaken at a fraction of the cost as also in much less time. BHEL has large internal accruals, in addition to its capacity to raise resources from the market, and can fully meet the resource requirements on its own.

BHEL has also taken steps for upgradation/introduction of new technologies. It has tied up to acquire new technology to produce thermal power equipment with super-critical parameters for the next higher rating 800 MW sets and above. Introduction of higher rating hydro turbine generator sets and advanced class Gas Turbines has also been planned to cater to upcoming market requirements.