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BHEL secures USD 457 million turnkey contract for 500 MW Power Plant in Sudan.

Date : 14/02/2006

BHEL secures USD 457 million turnkey contract for 500 MW Power Plant in Sudan.

Bharat Heavy Electricals Limited (BHEL) has achieved its biggest ever breakthrough in overseas markets with a turnkey contract for setting up a 500 MW steam power plant in Sudan.

Valued at US$457 million, this is the single largest export order secured by BHEL so far and also the largest value order on any capital goods manufacturing company in India. BHEL will commission the 500 MW Kosti power plant for National Electricity Corporation (NEC), Sudan in 44 months. On completion, this will be the single largest power project in Sudan. Given its strategic geographical location, the project will cater to the power needs of all regions – north, south, east and west.

The contract agreement to this effect was signed by Mr. Ashok.K.Puri, Chairman and Managing Director, BHEL, and Mr. Makkawi Mohammad Awad, Managing Director, NEC, in the presence of Mr. Sontosh Mohan Dev, Union Minister of Heavy Industries & Public Enterprises, Govt. of India and Dr. Awad Aljaz, Minister of Energy and Mining, Govt. of Sudan. Top officials of the Governments of India and Sudan, besides BHEL and NEC were also present on the occasion.

BHEL will install four units of 125 MW each along with crude oil-fired boilers at the Kosti power plant, which may later be expanded to 3,000 MW. Govt. of India has extended a concessional line of credit of US $350 million through the Exim Bank.

Major equipments to be supplied by BHEL for the project include oil-fired boilers, steam turbines and generators, control systems and 220 kV switchyard, besides associate auxiliaries. While the steam turbine, generators & pumps will be manufactured at BHEL's Hyderabad plant, the boilers and the ESPs will be manufactured at the company's Trichy and Ranipet plants, respectively. Transformer switchgear and control panels will be supplied by BHEL’s Bhopal and Jhansi plants. The company’s Project Engineering Management group will take care of the engineering while the project management will be done by the Overseas Project group of BHEL’s International Operations division.

BHEL has established its references in over 60 countries and its technical competence has earned worldwide acclaim. Having identified overseas business as a major thrust area, the company has achieved significant successes during the current financial year and is poised to achieve a quantum growth in its export business by consolidation in existing markets and widening its export base through expansion of existing basket of products and services and entering new markets.

Other major achievements in the current fiscal include a landmark turnkey contract for two power projects from PDO Oman. In addition, the company has made inroads into two new markets namely Ethiopia and Surinam.

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