BHEL bags contract in Ethiopia, outbids China

Mumbai, Jul 20: Bharat Heavy Electricals Ltd (BHEL) has bagged its second consecutive order from Ethiopia for 230 kV sub-stations on EPC basis from Ethiopian Electric Power Corporation (EEPCO).

BHEL has won this contract outbidding Chinese and other multinational companies. The order, valued at around Rs 46 crore, is funded by the Kuwait Fund.

Informing the BSE, the company said it had won a similar contract last year for sub-stations, funded by the World Bank, making inroads in Ethiopia.

The contract agreement for this project, signed between BHEL and EEPCO, is part of an electrification programme initiated by the Ethiopian Government.

BHEL's scope of work in the project includes design, supply, erection, civil construction and commissioning of 230 kV Semera and Dichoto substations. The substations are to be completed in a schedule of 18 months.

On energisation, these sub-stations will provide 24 hours power supply to 382 towns in Ethiopia. This project is significant for the ongoing rural electrification activities in that country. The project has been particularly designed to support developmental activities in the area.

Under its power development programme, EEPCO has identified a series of sub-stations and generation projects in the country. BHEL is working towards securing these businesses and associating with EEPCO in their power development programme on a long-term basis, which will benefit the people of Ethiopia in getting uninterrupted power supply.

BHEL has identified overseas business as a major thrust area.

During the last financial year (2005-06), BHEL had booked the highest-ever physical export orders of Rs 3,348 crore -- a six-fold increase over the previous year. For the first time, export orders contributed 18 per cent to the company's total order booking during 2005-06.

UNI