BHEL to invest Rs20K cr on expansion
Bharat Heavy Electricals Ltd (BHEL) has plans to pump in around Rs20,000 crore on brownfield expansions and joint ventures. The company has chalked out plans to expand existing facilities across the country to take the total capacity to 15,000 MW by end 2009 and to 20,000 MW by 2011. The total investment will be made from internal accruals.
BHEL will enter into joint ventures with foreign companies for making castings and forgings, railway locomotives, reactors, photo-voltaic cells, oil rigs and also with domestic power generation companies like NTPC and SEBs in setting up power plants.
It is understood that the company is in talks with Japanese and European companies manufacturing large sized castings and forgings (over 40 tonnes) for a joint venture so as to enter the nuclear power sector. The venture, requiring around 420 acres, is expected to involve an outlay of Rs15 billion and a decision on the joint venture partner is expected to be finalised by March.
The power equipment major partnering with Nuclear Power Corp has floated a tender to select appropriate technology partner for getting into EPC of nuclear plants. It is looking at turbine-generator capacity in the range of 700-1,600MW. The company has also drawn plans to invest Rs10 billion at its Bhopal facility to make rotors for nuclear turbines.
Additionally, in partnership with General Electric of the US, the company will begin manufacturing high powered diesel locomotives for the Indian Railways. Following the signing of JV with the Tamil Nadu Electricity Board (TNEB) for setting up a 2×800 MW super critical power plant, BHEL has plans to sign similar joint venture agreements with the state electricity boards of Karnataka, Gujarat, Orissa and Madhya Pradesh.