BHEL to invest Rs1,600 crore for expanding capacity

Our Corporate Bureau
29 August 2006

Mumbai: Bharat Heavy Electricals Ltd (BHEL), the state-owned power equipment major, is ramping up manufacturing capacity to 10,000 MW levels, at an investment of over Rs 1,600 crore.

"The manufacturing capacity of 10,000 MW is intended to meet the present indications of the likely power capacity addition target in the 11th Plan (2007-2012) of over 62,000 MW," BHEL said in a statement. The capacity addition may even surpass the projected 10,000 MW levels, depending on the requirements of the country's power sector, it added.

BHEL said most of the Rs 1,600-crore investment would go towards modernisation of plant and equipment and expansion of capacity at its facilities, adding that the enhanced capacity would become available by 2007.

The 10th Plan (2002-2007) is expected to add nearly 34,000 MW of fresh generating capacity in the country, of which the company's share of business would be about 19,500 MW, the statement said.

The focus, BHEL said, is on adding product and production facilities and on construction tools and equipment for erection and commissioning services at customer project sites. The current expansion plan is expected to add to work centre capacities.

BHEL said it has taken necessary steps for upgrading existing technologies and for introduction of new ones. It has already tied up new technology for thermal power equipment with super-critical parameters for the next higher rating 800 MW sets and above.