BHEL makes a foray into the Vietnamese Power Sector with Contract for Hydro Power Plant

Bharat Heavy Electricals Limited (BHEL) has achieved yet another major breakthrough in the South-East Asian region by winning a contract for Nam Chien Hydro Power Project in Vietnam and has made its maiden entry in the rapidly growing Vietnamese Power Sector. The contract was signed in a ceremony held at Hanoi on 28th July 2008 which was attended by dignitaries and senior officials from the Government of Vietnam and the Indian ambassador to Vietnam.

Valued at Rs.2,000 Million, the order has been placed on BHEL by Nam Chien Hydropower Joint Stock Company of Vietnam, a state-owned company, with Song Da Corporation, one of the largest companies under the Ministry of Construction and Petro-Vietnam, the state owned giant Oil and Gas group, as major stakeholders.

Funded by the Government of India's Line of Credit to the Government of Vietnam and administered by the Exim Bank of India, the contract envisages design, engineering, manufacture, supply and supervision of installation and commissioning of the complete Electro-mechanical equipment package for the hydro power project comprising two Pelton type hydro generating units of 100 MW each. The major equipment to be supplied for the project includes hydro turbines, generators, transformers, controls, monitoring and protection system and switchgear.

Nam Chien project is located in the Muong La district in the Son La province of Vietnam, 350 km north of Hanoi, and is slated for completion by the end of the year 2010.

Vietnam is one of Asia's fastest growing countries, with annual growth averaging 7.5 per cent over the past decade and with its electricity sector expected to grow at 16 per cent annually. This success opens a huge market potential for BHEL not only in the hydro segment but also in the thermal and gas based power plant segments in Vietnam which will witness huge capacity additions in the future.

Riding high on its dominant domestic position, BHEL is taking long strides to become a major global player by enhancing its presence in international markets. It has identified overseas business as one of its thrust areas as part of its 'Strategic Plan 2012'. The company is targeting a six-fold increase in its physical exports by 2012.

BHEL has established its footprints in all the six continents of the world spanning 70 countries and its technical competence has earned worldwide acclaim. Further stimulation in the growth of BHEL's international business will be achieved through consolidation in existing markets, widening the export base through expansion of its existing basket of products and services, and by entering new markets, with EPC business being the key driver of its exponential growth plans.