Notice to Stock Exchanges

Bharat Heavy Electricals Limited (BHEL) has achieved yet another breakthrough in the international market by winning its second consecutive order from Ethiopia for 230 kV substations on EPC basis from Ethiopian Electric Power Corporation (EEPCO). Last year, BHEL had won a similar contract for substations, funded by the World Bank, making inroads in Ethiopia.

BHEL has won the contract outbidding Chinese and other multinational companies. The order, valued at around Rs.460 Million is funded by the Kuwait Fund.

The contract agreement for this project, signed between BHEL and EEPCO, is part of an electrification programme initiated by the Ethiopian Government in the Afar State of Ethiopia.

BHEL’s scope of work in the project includes design, supply, erection, civil construction and commissioning of 230 kV Semera and Dichoto substations. The substations are to be completed in a schedule of 18 months.

On energisation, these substations will provide 24 hours power supply to 382 towns in Afar State. This project is significant for the ongoing rural electrification activities in Ethiopia. The project has been particularly designed to support developmental activities in this area.

Under its power development programme, EEPCO has identified a series of substations and generation projects in the country. BHEL is working towards securing these businesses and associating with EEPCO in their power development programme on a long-term basis, which will benefit the people of Ethiopia in getting uninterrupted power supply.

BHEL has identified overseas business as a major thrust area. During the last financial year (2005-06), BHEL booked the highest-ever physical export orders of Rs.33,480 Million - a six fold increase over the previous year. For the first time, export orders contributed 18% to the company’s total order booking during 2005-06.