BHEL looks to partner state firms for power generation ventures
06 September 2011
State-run power plant equipment maker Bharat Heavy Electricals Limited (BHEL) is likely to enter the power generation business in big way through joint ventures with state entities.
The move comes at a time when the government is planning to offload a 5-per cent stake in the state-run power plant equipment maker.
BHEL is willing to invest as a partner in state sector power projects, provided such joint venture companies source the main power plant equipment from BHEL, minister of heavy industries and public enterprises Praful Patel informed the Rajya Sabha today.
Such joint ventures, while generating revenues and business for BHEL, would also generate business for other state-run firms, who may operate as sub-contractors/ suppliers/ vendors to these joint ventures. This would also help power generation projects finance purchase of plant and equipment.
Raichur Power Corporation Limited, a joint venture between BHEL and Karnataka Power Corporations Ltd (KPCL), has placed orders worth Rs6,300 crore with BHEL. Under the joint venture agreement, BHEL will supply generators for the 2x800MW Yeramarus project.
Raichuur Power has also signed a letter of intent for supply of main power plant equipment worth Rs3,601 crore for the 1x800MW Edlapur project, the minister said.