BUSINESS

BHEL PSSR to handle export jobs

CHENNAI APRIL 9. The Power Sector-Southern Region (PSSR) of Bharat Heavy Electricals Ltd, which handles installation and commissioning of power projects as a division and independent profit centre of BHEL, has recently been assigned the task of handling all export jobs for the company in view of its exemplary performance, according to N. Kamalanathan, Executive Director.

During 2002-03, PSSR added 1,525 MW capacity to the southern states and Orissa, the highest by any PSR of the company, and set a national record in project execution by commissioning the 1,000 MW Simhadri project of the National Thermal Power Corporation (NTPC) and the 210 MW Raichur Unit-VII in the shortest periods, respectively, of 45 months and 25 months, Mr. Kamalanathan said.

Addressing a press conference here on Tuesday, the Executive Director said the turnover of PSSR during the year totalled Rs. 340 crores. Though the profit before tax for the year, at Rs. 45 crores, was less than in the previous year, taking into account a contingency provision of Rs. 22 crores against possible expenses and claims relating to newly commissioned plants (against nil provision under this head during 2001-02), the PBT actually showed an increase of 27 per cent. The value added during the year was Rs. 152 crores and value added per employee Rs. 23 lakhs. Apart from additions to capacity, PSSR undertook overhauling/annual maintenance works in 22 plants of 5,400 MW capacity.

PSSR had orders worth Rs. 321 crores on hand as of April 1, 2003, and was expecting another Rs. 600 crores worth of orders by July, 2003. Export orders for Libya, Brunei and Indonesia were expected during the second half of 2003-04.

Replying to questions, BHEL officials said the proposed reduction in the ceiling on central sales tax (CST) to two per cent from four per cent would, of course, reduce the cost for customers once it was made into law. However, some customers tended to put off taking delivery of equipment in anticipation of the reduction.