BHEL awarded ‘MoU Award for Excellence in Performance’ by the Prime Minister

New Delhi, March 8: Prime Minister Dr. Manmohan Singh presented the ‘MoU Award for Excellence in Performance’ to Mr. Ashok K. Puri, Chairman and Managing Director, Bharat Heavy Electricals Limited (BHEL), here today.

Awarded to BHEL for exceeding the overall targets set out in the MoU with the Government of India for the year 2004-05, the prestigious commendation was bestowed on the company at the Conference of Chief Executives of Public Sector Enterprises, jointly organised by the Department of Public Enterprises and SCOPE. BHEL was also awarded the MoU Excellence Certificate for exceeding the overall targets set out in the MoU for the year 2005-06, by Mr. Jairam Ramesh, Minister of State for Commerce.

During fiscal 2004-05, BHEL recorded an all-time high turnover at Rs.103,360 Million, growing by a healthy 19% and net profit at Rs.9,530 Million, soaring 45%. Significantly, in line with its vision – ‘committed to enhancing stakeholder value‘, BHEL recorded a surge in Economic Value Addition (EVA), which catapulted to Rs.5,040 Million from Rs.3,660 Million in the year before. In 2005-06, the momentum of double-digit growth achieved in the previous year was accelerated to the highest levels in the last three decades.

The growth momentum achieved is likely to be maintained in the current fiscal also and the company has recorded significant growth in its profitability parameters in the first nine months of 2006-07. While net sales/income from operations (nine months) has risen by a healthy 33.8% at Rs.103,180 Million, Profit After Tax (PAT) has catapulted by nearly 56%, at Rs.12,640 Million, reflecting BHEL’s sterling performance of earning profits for over three decades without a break. Consequently, the company has paid the highest-ever interim dividend of 125% for fiscal 2006-07, maintaining its track record of paying dividends uninterruptedly for the last 31 years.

Having demonstrated its track record in successfully establishing new technologies to serve the nation’s power sector, BHEL is now poised to introduce 800 MW thermal sets with supercritical parameters. BHEL has equipped itself to produce thermal power equipment for 800 MW sets and above, suited to Indian conditions, using Indian as well as imported coal. In addition, the company is shoring up its capability for higher rating Hydro sets and advanced class Gas Turbines to cater to upcoming market requirements.

Aimed at gearing up to meet the country's capacity addition targets towards the agenda of providing ‘Power to all by 2012’, BHEL is investing more than Rs.12,000 Million for holistic modernization and capacity expansion of its facilities from 6,000 MW per annum at present to 10,000 MW per annum by 2007. BHEL also has plans to further increase its capacity to 15,000 MW as required by the country’s power sector in the eleventh five-year plan.

Union Minister for Heavy Industries & Public Enterprises, Mr. Sontosh Mohan Dev also addressed the Conference, which was organised with the theme ‘Empowering Public Sector for Growth’.