The authority letter for taking over BHPV was handed over by Heavy Industries Secretary Satyanarayana Dash to BHEL CMD K. Ravi Kumar, in the presence of Finance Minister P Chidambaram, Heavy Industries Minister Santosh Mohan Dev and Andhra Pradesh Chief Minister Y S Rajasekhara Reddy. ''Synergy is the key word associated with mergers and acquisitions and I see a major role for BHPV in complementing the other units of BHEL in keeping in pace with the government's power generation capacity addition programme,'' Mr Dev said in his presidential address.
About the MoU, he said the proposed plant would pave way for new trends in power generation with APGenco's technical capability and expertise in running thermal power plants, and BHEL's expertise in technology development and power plant equipment manufacturing.
The plant, based on integrated coal gasification combined cycle technology, will lead to less air pollution, water consumption and solid waste production compared to conventional coal-based power plants.
Mr Ravi Kumar said supporting BHPV will make better business sense where economies of scale could be achieved by enhancing the capacity with brownfield investments.
''We are confident of meeting the capacity addition targets for the XI Plan period, with BHPV complementing our business as a part of the BHEL family,'' the CMD said.
With BHEL Trichy unit heavily booked with orders for boilers in the utility segment, BHPV can be developed as a dedicated centre for industrial boilers.
With a capital expenditure of Rs 236 crore, spread over three years, in addition to induction of experienced manpower and required technology from BHEL, BHPV's turnover is expected to cross Rs 1,000 crore in five years.