Tiruchirapalli, May 12: The Navratna Bharat Heavy Electricals Limited (BHEL) has formally taken over Bharat Heavy Plate and Vessels (BHPV). The market for BHPV's products, especially in process equipment and cryogenics is expected to grow rapidly, a release from BHEL said here today.
With BHEL's Tiruchirapalli unit heavily booked with orders for boilers in the utility segment, BHPV could be developed as a dedicated centre for industrial boilers, ensuring better delivery. Though the current cost structure of BHPV was similar to that of BHEL, costs were expected to come down due to factors like increased volumes, better financial capability leading to lower working capital borrowing costs.
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 was expected to cross Rs 1,000 crore in five years.
The release said a Memorandum of Understanding (MOU) for setting up the largest Integrated Coal Gasification Combined Cycle (IGCC) Power Plant at Vijayawada, was also signed between BHEL and Andhra Pradesh Power Generation Corporation (APGENCO).
BHEL has embarked on several initiatives to meet the growing demands of country's power sector. "As per the Strategic Plan 2012 adopted by the company, we envisage Power Sector to contribute 70 per cent to the company's turnover by 2011-12 with 30 per cent contribution from industry related businesses taking BHEL's sales turnover to Rs 45,000 crore by 2012," the release added.
The MoU signed by BHEL with APGENCO paves the way for setting up a 125 MW demonstration plant based on IGCC technology which substantially reduces air pollution, water consumption and solid waste production compared to conventional coal-based power plants, it added.