September 07, 2008

BHEL plans JVs with APGenco and TN power board

It is reported that Bharat Heavy Electricals Limited is all set to finalize separate JVs with Andhra Pradesh Power Generation Company and Tamil Nadu Electricity Board, close on the heels of its first JV company, NTPC BHEL Power Projects.

As a first step, BHEL will sign a MoU with the APGenco for supplying equipment for a 125 MW plant, which is expected to come up at Vijaywada in Andhra Pradesh. According to a senior BHEL official, the firm will supply the equipment within 36 months. The plant will be based on the integrated gasification combined cycle technology, which uses synthetic gas produced in a captive gasification unit to power a turbine generator in the plant, thus producing low cost power.

BHEL will float the JV with the Tamil Nadu State Electricity Board for the execution of a 1,600 MW supercritical thermal power project in Tamil Nadu estimated to come up at an investment of INR 8,500 crore. The MoU for the JV was signed in October 2007. The BHEL official said that "We will supply two boilers of 660 MW capacity each for NTPC's Barh stage II power project. The engineering work has already begun and the supply is expected to begin in a year's time." He added that BHEL will invest around INR 10,000 crore to expand manufacturing facilities at Trichi to meet the increased demand.

Similar ventures may also be finalized with Uttar Pradesh, Orissa, Gujarat and Maharashtra. Meanwhile, BHEL has also bagged its maiden orders for super critical boilers from NTPC.