BHEL bags Rs3,700 crore turnkey contract from KPCL

Bharat Heavy Electricals Ltd (BHEL) has bagged a Rs 3,700-crore turn-key contract for setting up a 700 MW thermal power station at Bellary for Karnataka Power Corporation Ltd (KPCL).

The station already has a BHEL-supplied 500 MW unit, and a second one of the same size is under installation by BHEL.

BHEL has commissioned about 5,000 MW of power generating sets in the state, thermal and hydro, according to a company statement.

The company is also executing the 2x800 MW Yermarus supercritical thermal power station of Raichur Power Corporation, which is a joint venture between KPCL and BHEL. The company has been set up to build, own and operate supercritical power plants in the state of Karnataka.

Speaking to The Economic Times newspaper, BP Rao chairman and managing director BHEL said that the new order had been received against stiff international competition and with the order BHEL has about 11 sets of boilers in the supercritical technology and about 9 sets of TG sets. The order would be delivered in about a period of four years and for this year the company did not have any revenues planned from the order. Revenues from the order would start from the next year.

He added that the current order book was roughly about Rs150,000 crore and the division between private and public in all the segments would be approximately around 50:50. He added that last year most of the private customers particularly in the power generation field finalised a number of orders with the company and this year BHEL was seeing some of the state generation companies also finalising orders.

Responding to a question about analysts projections that FY13 and FY14 would be rather cautious for the company after strong FY11 and FY12 he said that with the order book of Rs1,50,000 crore and with the kind of projections that he had, BHEL would repeat the performances especially given the very good receipts of last two years and regular growth was definitely ensured for the next three years and he did not see any worry in FY13-14.