BHEL awarded equipment contract for Vietnamese hydro power plant

Marking its first equipmrnt supply contract from Vietnam, Bharat Heavy Electricals Limited will provide power generation equipment for the country's Nam Chien Hydro Power Project.

Though the order is modest in value compared to the publc sector undertaking's other overseas orders, it none the less establishes a bridgehead for the company in one of the fastest growing economies in the South East Asian region --- Vietnam's annual growth has been averaging 7.5 per cent over the past decade and its electricity sector is expected to grow at over 16 per cent annually.

Therfore, this order 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.The major equipment to be supplied for the project includes hydro turbines, generators, transformers, controls, monitoring and protection system and switchgear.

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

The Rs200-crore order was placed on BHEL by state-owned Nam Chien Hydropower Company, of which the 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 Indian government's line of credit to the Vietnamese government and administered by the Exim Bank of India, the contract involves the 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.

BHEL has identified overseas business as one of its thrust areas as part of its 'Strategic Plan 2012' and is targeting a six-fold increase in its physical exports by 2012.

BHEL says it has established its footprint in 70 countries spread across all continents and plans to use its EPC business as the driver for future growth.