With TNEB for thermal power project in Tuticorin district
TIRUCHI: Bharat Heavy Electricals Limited (BHEL) will complete formalities this month for the joint venture with Tamil Nadu Electricity Board (TNEB) for installing the first 2 x 800 MW Supercritical Thermal Power Project in Tuticorin district, Executive Director of BHEL – Tiruchi Complex R.N. Misra said on Friday.
The first unit would be commissioned in 42 months and the second three months later, Mr. Misra said addressing the annual press conference. Highlighting the achievements of BHEL-Tiruchi during 2007-2008, he said that a record turnover of Rs. 5,606 crore (compared to Rs. 4,606 crore in 2006-07) was achieved with an all time high profit before tax of Rs. 1,496 crore (Rs. 872 crore in 2006-07), by far the best in its 43-year history.
He attributed the huge increase in profit despite growing competition in the power equipment business to massive measures to optimise product designs, increase productivity and to cut costs across the board. The rapid rise in the cost of steel would be offset through automation and productivity. The BHEL would sign fresh contracts with the section of vendors procuring inputs and supplying products, factoring in the rise in input cost, he assured, replying to a question.
Inflow of orders worth Rs. 10,200 crore was also the highest during the year. The order book of BHEL Tiruchi stood at a healthy Rs. 17,400 crore as on March 31, 2008. With the business of power equipment manufacture being good, the question of diversification into power generation or distribution does not arise, he said, responding to a query. Power generation with BHEL’s utility sets has touched 85,786 MW, accounting for 64 per cent of the total 1,34,695 MW, he said.
Backlog of orders would be addressed through capacity expansion. The 10,000 strong workforce of BHEL Tiruchi would be increased by approximately 2,350 over the next two to three years. It is one of the first units to introduce HR module of ERP.
Referring to the preparedness for XI Plan orders for utility sets of 32,815 MW placed on BHEL, he said the company was fully geared up to meet the supply schedules. Supplies from BHEL Tiruchi for 11 units identified for completion by the Commonwealth Games at New Delhi in 2010 had commenced 100 per cent on schedule, he informed.
Mr. Misra considered as a landmark achievement BHEL’s entry into the supercritical league by bagging the order for supply of two super critical boilers of 660 MW capacity received from the National Thermal Power Corporation for Barh Stage II. Lower fuel consumption would bring down the cost of power generation and reduce emissions.
Export orders for soot-blowers from New Zeland and UAE had been received in addition to orders for oilfield equipment from the Middle East. As much as 77 per cent of the orders from the power sector were secured through the International Competitive Bidding route and 62 per cent of the orders were from repeat customers, he said, citing it as a proof of customer confidence in BHEL’s capabilities. The rest have placed orders on negotiation basis.
As many as 19 new patents and 36 copyright applications had been filed on the basis of in-house developments, said Mr. Misra.