Power equipment manufacturer Bharat Heavy Electricals Ltd (BHEL) is likely to spend nearly Rs 5,000 crore over the next three years in its yet-to-be-formed joint venture companies with power utility NTPC and Nuclear Power Corporation of India Ltd (NPCIL).
“Some of this money will also be spent on other possible ventures with private sector companies,” said BHEL Chairman and Managing Director K Ravi Kumar.
BHEL and NTPC agreed to form a joint venture in September last year to construct power plants and also manufacture power equipment. Kumar said the new company was likely to be formed by next month. The proposed company will take up projects both in the country and overseas.
A joint venture with NPCIL is also likely to be formed in the “first half of the next financial year,” Kumar said. The joint venture is likely to take up engineering, procurement and construction for nuclear power plants in India and overseas.
NPCIL, which is the only company mandated to set up nuclear plants in India, currently generates about 3,900 Mw of electricity from its 16 power plants. The company plans to more than double its capacity to 10,000 Mw over the next six years.
BHEL has supplied almost 80 per cent of the nuclear power equipment currently used in the country.
The company, in which the government owns 67.72 per cent stake, is also looking to buying a mid- to small-sized company for which it has Rs 1,000 crore.
“We are talking to many companies in India and overseas,” said BHEL finance director CS Verma. BHEL is looking primarily at companies in the US and Europe, another company official said.
He added that the company, which has cash reserves of over Rs 4,000 crore, would fund these investments through its internal accruals. It recorded a net profit of Rs 1,749 crore in the first nine months of the current financial year, up 38 per cent over the same period the previous year.
BHEL today also paid an interim dividend of Rs 298 crore to the government for the current financial year, taking its total interim dividend to Rs 441 crore, which is 90 per cent of its enhanced equity capital post-bonus, Kumar said.
The company has an order-book worth Rs 78,000 crore. It currently has a manufacturing capacity of 10,000 Mw per annum and plans to expand it by another 15,000 Mw over the next two years.
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Friday, March 21, 2008
BHEL to spend Rs 5,000 cr on JVs with NTPC, NPCIL
Friday, February 15, 2008
BHEL gets $7bn cover for Rs 42cr
Kolkata-based non-life Insurance major National Insurance has designed a unique cover for navratna giant Bharat Heavy Electricals (BHEL) to provide insurance protection for all its projects under a single policy.
According to a release issued by National Insurance today, the total sum insured under the cover is approximately $7 billion, spanning 19 projects that BHEL currently has in its order books with a provision to attach more projects that may be procured during the policy period.
The initial premium is estimated at Rs 42 crore, the release added.
Friday, February 8, 2008
Top News - 08-Feb-2008
NTPC, Bharat Forge to float 49:51 JV
National Thermal Power Corporation (NTPC) today signed an Memorandum of Understanding (MoU) with Bharat Forge to promote a joint venture company.
According to a release issued by NTPC to the BSE today, the JV would have an equity participation of 49 : 51 by the company and Bharti Forge, respectively.
The JV will take up manufacture of castings, forgings, fittings and high pressure piping required for the power and other industries, Balance of Plant (BOP) equipment for the power sector etc.
Dr Reddy's partners SkyePharma for new drug
Dr Reddy's Laboratories (DRL), a Hyderabad-based pharmaceutical major, has entered into an agreement with British drug maker SkyePharma to undertake a feasibility study of a product utilising two of the latter's proprietary drug delivery systems.
According to an official release issued by the DRL to the BSE today, it will bear the costs of the study and SkyePharma will also receive an upfront payment. If the feasibility study is successful, full development activities will begin later this year.
Rahejas plan Rs 3000cr IT park in Orissa
Mumbai-based realty major Raheja group will be investing around Rs 3000 crore for the development of the first information technology (IT) park in Orissa.
Alongside, a 50 Mw power plant, cold storage in the public-private-partnership (PPP) mode and a hotel would also be set up by the group. The group also plans to enter the retail space and set up an IT development centre after surveying the potential.
The park would be christened Mindspace cum Techno-campus Park. The group already has such Mindspace cum techno-campus parks in Hyderabad, Mumbai and Ahmedabad.
A detailed presentation of the proposed IT Park was given to Orissa Chief Minister Naveen Patnaik and senior IT officials of the state government today.
As per the presentation, in the first phase an incubation centre on 30-40 acres would be developed. The entire IT park would come up over 100 acres.
The plan envisages development of the park within the next 8-10 months, provided land is made available by the Orissa government in the next couple of months.
BHEL bags Rs 3,390cr UP power plant order
Power equipment maker Bharat Heavy Electricals (BHEL) has secured a contract worth Rs 3,390 crore for setting up 2 units of 500 Mw each at Anpara D Thermal Power Station (TPS) in Uttar Pradesh.
The units, ordered by Uttar Pradesh Rajya Vidyut Utpadan Nigam (UPRVUNL), are slated for commissioning in 2011-12.
BHEL's scope of work in the contract includes design, engineering, manufacture, supply, erection and commissioning of boiler turbine generator package along with associated auxiliaries, balance of plant and civil works.
BHEL has already commissioned over 10,000 Mw of power generating sets in the state, which include thermal, gas-based, nuclear and hydro units of various ratings.
Tuesday, January 29, 2008
BHEL to invest Rs 736cr in Trichy
Bharat Heavy Electricals ( BHEL) today announced that the company would be investing Rs 736 crore to increase the capacity of its manufacturing plant at Trichy in Tamil Nadu by 2009.
The company will be upgrading the production capacity of boilers by over four times in the unit. It has already invested Rs 190 crore on the boiler shop in Tamil Nadu.
"The company is augmenting its manufacturing capacity to 15,000 Mw per annum by 2009. As part of this, BHEL is upgrading its boiler manufacturing facility at its Trichy plant," the company said in a statement.
With the completion of this capacity augmentation programme, BHEL's production capacity for manufacturing thermal and nuclear boilers would go up to 4,81,000 million tonne from a capacity of 1,08,000 million tonne prior to commencement of the expansion programme, the statement said.
