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Home arrow News arrow Power and Energy arrow BHEL manufacturing capacity to reach 20,000 MW per annum by March 2012
BHEL manufacturing capacity to reach 20,000 MW per annum by March 2012 Print E-mail
Written by Viswanath   
Saturday, 09 April 2011
New Delhi: Bharat Heavy Electricals Limited's augmentation of manufacturing capacity from 15,000 MW p.a. to 20,000 MW p.a. is on track for completion by March 2012 with 82 machines out of 251 machines commissioned so far. BHEL has earmarked a capital expenditure amount of Rs. 1,700 crore for the current financial year.

The company made an investment of Rs 1,771 Crore during 2010-11 towards augmentation of manufacturing capacity and modernization of facilities in manufacturing units and at power project sites.

Focused attention was given on rebuilding and retrofitting of existing facilities to enhance their life, accuracy and productivity through an additional investment of Rs 58 Crore.

It's R&D expenditure was 21 percent higher than previous year at Rs. 1,005 Crore. BHEL aims to spend Rs. 1,250 crore for R&D activities this fiscal.

"The company has taken a number of initiatives. Localisation of technologies, continuous working on supply chain and lower material costs helped in good profit," BHEL's chairman and managing director B. Prasada Rao said while announcing its annual results.

It's revenues recorded an increase of 27 per cent at Rs. 43,451 crore in the last fiscal, compared to Rs. 34,154 crore in 2009-10. A turnover of Rs 7,758 Crore was achieved through products and systems developed in-house, an increase of 15 % over the previous year.

BHEL plans to establish a Centre for Nanotechnology in Hyderabad, to explore applications of nano materials in power plant components. The company has already established BHEL R&D Gateway at IIT Madras Research Park Chennai – promoting research in Ultra Supercritical power cycles and high temperature materials.

There was a 31 percent growth in BHEL's IPR capital taking the total to 1,438 patents/copyrights. BHEL filed 303 patents and copyrights, enhancing the company's intellectual capital to 1,438 patents and copyrights filed, which are in productive use in the company's business.  A total of 91 patents and copyrights were granted during the year. Currently, 532 patents & copy rights are in force.

BHEL plans to hire about 4,000 people this year. This would take the total headcount from over 46,700 to more than 50,000.

The company will focus on initiatives like vendor base expansion, outsourcing, advanced manufacturing action, rate contracts, deployment of additional tools and plants, global sourcing and away centre fabrication, etc. in order to make it's supply chain agile and accelerate project execution.

Capability building initiatives like Lean Manufacturing (LM), Design-to-Cost (DTC) and Purchase-Supply-Management (PSM) in identified product areas across the company would enable the company remain cost competitive.

BHEL is actively pursuing several opportunities for sustaining future growth. These include:

• Transportation business where BHEL is participating in the tenders for setting up factory for Electric Loco components at Dankuni, West Bengal and Diesel Loco factory at Marhowra, Bihar respectively. The company has already received breakthrough orders for State-of-the-art propulsion equipment (IGBT based) for 6000 HP Electric Locomotives and 1400 HP AC EMUs . BHEL is already executing an order for 200 numbers of 5,000 HP 25 kV AC Mainline Electric Locomotives (Type WAG -7) for Indian Railways.
• Nuclear business where in addition to supplying steam generators for new rating 700 MWe Nuclear sets BHEL has entered into a tripartite JV with NPCIL & Alstom for conventional island of Nuclear Projects for 700 MWe & above.
• Solar business where the company's has entered into a Joint Working Arrangement for Concentrated Solar thermal Power Plant (CSP) and the Strategic Alliance with BEL for formation of JV for setting up manufacturing facility (240 MW) for silicon wafers, solar cells & modules.
• Transmission business where BHEL has entered into a Strategic Alliance with Toshiba, Japan to establish a JVC to address T&D business in India and other mutually agreed countries. The JVC will cover equipments and projects in EHVAC & UHVAC range including 765 kV transformers and reactors & GIS, in addition to other products and systems.
• Water business where BHEL has entered into a manufacturing associate agreement with GE India Industrial Private Limited (GEIIPL), for Water Treatment Equipment. The company will be able to provide more cost effective membrane-based water treatment systems for power plants and industrial sector for all type of input water like sea water, brackish water and waste water.
• Infrastructure financing company which will enable BHEL to finance power projects by providing funding support to attract potential customers & optimize returns on cash reserves.

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