Major News in the Power Sector s2

MAJOR NEWS IN THE POWER SECTOR August 1st to 31st 2008

TATA POWER

Tatas, Reliance put mega power projects on fast track The promoters of the first couple of the Ultra Mega Power Projects (UMPPs) have put their projects on fast track and hope to commission at least one unit each way before the end of the current Plan period. Tata Power has significantly advanced the commissioning of its 4,000-MW Mundra UMPP, with the commissioning of the first 800 MW unit being advanced by over seven months to February 2011. Tata Power had achieved financial closure for the Mundra project during April 2008, which is coming up at Mundra in Gujarat and is owned by its subsidiary Coastal Gujarat Power Ltd. The cost of the project is estimated at Rs 17,000 crore. The entire project is slated to take off by March 2013. Reliance Power, which is promoting the Sasan project, has committed the Government to advance the commissioning of its first unit by nearly 16 months to December 2011, as against May 2013 as per the Power Purchase Agreement. The second unit will come after three months in March 2012. (The Hindu Business Line, Aug 01, 2008)

Tata Power in Race for Singapore Co Singapore’s Temasek Holdings has shortlisted Tata Power (TPC) to bid for the city state’s power generating company, Senoko Power. This would enable the Tata company to enter second round of global bidding. The successful bidder may need to fork out $3 billion to bag Senoko. Although Tata Power said it hasn’t received any official confirmation, officials said they have been informally told about it. Tata Power will have to compete with global giants like Japan’s Marubeni and Mitsubishi, France’s GDF Suez, Malaysia’s YTL Power and the OneEnergy-CLP Holdings combine. Interest in Senoko picked up after China’s Huaneng group bought out Singapore’s Tuas Power earlier this year for $3.1 billion. (The Economic Times, Aug 06, 2008)

Tata Power likely to skirt Bumi royalty shocker The Indonesian government has imposed a $595 million royalty charge on first- generation coal companies operating in the country. Tata Power owns equity stakes in two coal mines in Indonesia. But analysts said it may not see a major impact on earnings due to the imposition of this duty since it is just a minority shareholder. Tata Power has a 30% stake in KPC and Arutmin mines in Indonesia, which are majority- owned by Bumi Resources. An analyst with a leading domestic brokerage stated that this is expected to have some impact on Bumi’s earnings for the coming quarters, but Tata Power could see minuscule impact. That is because of two reasons — first, Tata Power is an equity stakeholder in the mines and second, the dues are historical in nature (DNA, Aug 07, 2008)

Tata Power eyeing $3 billion nuclear power foray With India's nuclear isolation likely to end soon, energy major Tata Power is busy planning and studying a minimum $3 billion (Rs 120 billion) foray into nuclear power. Mr. Sharaf Ali Bohra, advisor for Tata Power stated that the company will initially venture into nuclear power either on its own or through a joint venture once the sector is opened up to private utilities. At present, four major technologies are available for nuclear power using enriched uranium. India also has an indigenous technology using natural uranium, as it does not have the sanction to import enriched uranium. (The Economic Times, Aug 16, 2008)

Tata BP Solar: Empowering industries, companies and institutions! There’s a myth amongst urbanites that solar energy is more suited for rural applications. While acknowledging the fact that solar energy has contributed significantly to build rural infrastructure, it can in the same vein impact the urban populace and corporates. The impact would be evident in coming years as the relevance of energy security gains its importance. Tata BP Solar, India’s largest solar company, has been leading the solar revolution and developing path-breaking solar solutions for industries and corporates. The Company has been at the forefront of installing and commissioning grid-connect systems and developed expertise with close to 2 decades of experience. The 100 KWp grid-connect system which the company has executed for Vikas Soudha, Bangalore (replica of Vidhana Soudha) is one such prestigious project which helps in supplementing grid electricity and meeting peak load requirements. (Business Standard, Aug 21, 2008)

Tata BP Solar aims to be $1 billion firm by 2012 Solar energy solutions provider Tata BP Solar India Ltd aims to become a billion dollar company by 2012. The installed capacity of the company would reach 300 MW by the year. The company, a joint venture between Tata Power Company and BP Solar, has already invested RS 400 crore in the current fiscal year for manufacturing 180 MW of solar cells and 125 MW of solar modules. It provides services to defence forces, states such as Bihar, Jharkhand, Chhattisgarh, IIT-Kanpur, IIT-Delhi, IIM-Bangalore and has also electrified 20 villages in Orissa. (Mint, Aug 25, 2008)

Tata Trading may tilt power scales for Thane, Navi Mumbai Consumers in Thane, Navi Mumbai and Pune may get relief from regular load-shedding if their franchisee, Tata Power Trading Company Limited (TPTCL), procures around 400 MW daily. The franchisee model scheme which was suddenly scrapped by Maharashtra State Electricity Distribution Company Limited (MSEDCL) has been made re-operational after a meeting of the state utility, TPCL and consumer organizations held at Mantralaya. Close on the heels of scrapping the zero load-shedding, consumer organizations and TPTCL had asked the state power utility to allow them to procure power on a daily basis to do away with power cuts in these areas. Although TPTCL has been allowed to get daily power, they have been instructed to get the entire 400 MW – which is the total requirement of Thane, Pune and Navi Mumbai – to keep these areas lit 24X7. (DNA, Aug 26, 2008)

Low price China, shipbuilders draw Reliance, Tata Power cos Power producers Tata Power Co. Ltd and Reliance Power Ltd have both turned to China’s state-run Qingdao Beihai Shipbuilding Heavy Industry Co. Ltd for dry bulk cargo ships, enticed by the lower prices offered by the firm than its South Korean competitors. Tata Power recently signed a $200 million (Rs874 crore today) contract with Qingdao Beihai for constructing two so called capsize ships, each capable of carrying 200,000 tonnes of cargo, said a person familiar with the development. The ships were ordered by TPC Energy Asia Pte Ltd, a special purpose vehicle incorporated in Singapore by Tata Power for owning ships and to trade in fuels. The two ships would be ready by 2011 to carry coal for Tata Power’s 4,000MW power plant at Mundra in Gujarat, which starts operations in early 2012. (Mint, Aug 29, 2008)

COMPETITION/ CONSUMERS

 RELIANCE ENERGY LIMITED (REL)

Reliance Power in talks to raise Rs 10,000 crore for Krishnapatnam Anil Ambani-controlled Reliance Power is in talks with a consortium of domestic banks to raise as much as Rs 10,000 crore to fund its Krishnapatnam ultra mega power project. The company has appointed Industrial Development Bank of India (IDBI) as a lead banker for the consortium. Reliance Power has announced its intention to raise Rs 26,000 crore through a combination of rupee and external commercial borrowings (ECBs). An amount of $4 billion (Rs 16,000 crore.) will be raised through ECBs. SBI has been mandated to mop up Rs 10,000 crore for its Sasan ultra mega power project. In total, the company will raise close to Rs 36,000 crore to fund its Sasan and Krishnapatnam projects. (Hindustan Times, Aug 04, 2008)

Reliance Power to raise $2.5-bn loan Reliance Power Ltd is planning to raise as much as $2.5 billion through India's largest rupee-denominated loan this year to fund a power project. The Company has hired SBI Capital Markets, a unit of State Bank of India, to raise the funds for its 3,960 megawatt coal-fired plant at Sasan in central Madhya Pradesh state. The loan priced at 11.75 percent will be for tenure of 15 years. (The Indian Express, Aug 07, 2008)

Govt may allow Reliance Power to use coal from Sasan for other projects The Government may consider allowing Anil Ambani group’s Reliance Power use surplus coal from captive mines attached to its Ultra Mega Sasan Power Project for another project after it provides a mining map to establish that it has excess fuel. A Group of Ministers, looking at the fuel issues for Sasan project, has asked the company for the mining plans. The power generated from the surplus fuel will be sold on tariff-based bidding. (The Hindu Business Line, Aug 16, 2008)

Coal ministry disqualifies Rel Power's bid for CTL project The coal ministry has disqualified Anil Ambani’s Reliance Power Ltd, SETSL, Adani Enterprises, Sterlite Energy, Bhushan Steel Ltd, Jindal Steel and Power Ltd besides nine others who had submitted bids for the allocation of coal blocks for setting up of the $8 billion coal to liquid (CTL) project. The companies have failed to fulfill an eligibility criterion of minimum individual net worth, set by the coal ministry at Rs 4,000 crore. While Reliance Power has been disqualified by the coal ministry, another Anil Ambani’s company Reliance Infrastructure Ltd has qualified for the project. (The Financial Express, Aug 22, 2008)

Rel Infra invites bid for power supply Reliance Infrastructure (Rel Infra), formerly Reliance Energy, has invited bids from power generation companies for supply of 50 MW as part in order to reduce its dependence on short term supply, or spot buys, to bridge the demand-supply gap. Rel Infra, which focuses on suburban Mumbai for power distribution, has a coal-based generation capacity of 500 MW at Dhanu. At present, the demand-supply gap is 350 MW to 400 MW in the suburban area, which is filled through spot purchases, or short term contracts. (Business Standard, Aug 28, 2008)

Reliance Infra buys back Rs 630-cr shares Reliance Infrastructure has bought back shares worth Rs 630.22 crore from the open market. The company has purchased 56,60,000 equity shares of Reliance Infrastructure on August 26. The company had fixed a maximum acquisition price of Rs 1,600 a share. (Business Standard, Aug 28, 2008)

 MAHARASHTRA STATE ELECTRICITY BOARD (MSEB)

MahaTransco to seek Govt approval for Rs 1,500-cr IPO The Maharashtra State Electricity Transmission Company Ltd (MahaTransco) proposes to enter the capital market with an IPO to raise around Rs 1,500 crore. Once the Government clearance is in hand, the company would go ahead with formalities including appointment of merchant bankers. This will be the first of the three State government power companies going for a public issue. (The Hindu Business Line, Aug 08, 2008) MSEB aims at zero cuts in Thane, Navi Mumbai MSEB said that it would try to have zero load-shedding in Navi Mumbai, Thane, Mulund and Pune on days additional electricity could be procured from outside Maharashtra. The company said that if Tata Power Trading CO Ltd manages to get extra power at high costs from outside, there will be zero load-shedding in Navi Mumbai, Thane and Pune. The three cities need 350 MW to avoid a power cut. They pay between 35 paise and 45 paise per unit as reliability charge to enjoy uninterrupted power. (The Times of India, Aug 13, 2008)

All 3 MSEB arms show profit In a year when Maharashtra’s power scenario is at its worst, all three wings of the Maharashtra State Electricity Board (MSEB) have shown profits for the first time. Mahagenco and Mahatransco have been earning profits since 2005-06. However, Mahavitaran (distribution arm) which was a loss-making utility till last year also generated a profit this year. (Asian Age, Aug 16, 2008)

State calls for ministers’ meet after MSEB office is torched A mob of a few hundred people gathered in front of the Shahganj section office in Aurangabad city on Thursday afternoon to protest long hours of power cuts. The Shahganj and neighbouring areas were facing continuous disruption due to breakdown in the distribution network. The mob pelted stones and burned down the section office. However no one was injured in the violence. Rattled by the violence, the state government has called for a meeting of a group of ministers to decide emergency measures for tackling the power shortage. (The Times of India, Aug 29, 2008)

 NATIONAL THERMAL POWER CORPORATION (NTPC)

NTPC largest power plant polluter: Study Even though the Climate Action Plan is quiet on commitments to cap India's greenhouse gas emissions, a global study-Carbon Monitoring for Action (CARMA)-puts the spotlight on the role India's power generators play in causing global warming. CO2 emissions of 50,000 power plants worldwide have been compiled into a database (CARMA), which states that India emits 583 mn tonne of CO2 generated by its power plants. Of this, leading power utility NTPC alone contributes 182 million tonne of CO2 (31%), giving it the dubious distinction of the largest polluter among Indian power plants. (The Times of India, Aug 01, 2008)

NTPC plans to add 16,000MW in 12th Plan NTPC, with an installed capacity of 29,394 MW along with joint venture partners, proposes to invest as high as Rs 64,000 crore for the setting up of four units of 4,000 MW each during the 12th Plan. The proposed capacity-addition of 16,000 MW will be a part of its total addition plan of 25,000 MW in the 12th Plan period (2012-17). In addition to this, the company will expand its Vindhyachal project by 1,000 MW taking its total capacity to 4,260 MW from the existing 3,260 MW. With this, NTPC will have five projects with generation capacity of 4,000 MW each by the end of 12th plan period. (The Financial Express, Aug 02, 2008)

NTPC pact with GE Energy, ADB NTPC Ltd has joined hands with the Manila-based Asian Development Bank (ADB), GE Energy Financial Services, Kyushu Electric Power Co and Brookfield Renewable Power to form a joint venture firm to undertake renewable power generation. The companies signed a memorandum of understanding (MoU) to form the join venture firm, in which NTPC will initially take a 40 per cent stake while the remaining would be equally shared by other entities. The proposed venture will, over the next three years, develop “greenfield and underutilized sites” for a portfolio of about 500 MW of renewable power generation resources in India. The company would seek to develop projects in the country and may consider investing abroad in the near future. (The Hindu Business Line, Aug 06, 2008)

NTPC forms JV with NHPC, PFC, TCS to set up power exchange NTPC has formed a JV company with NHPC Ltd, Power Finance Corp (PFC) and Tata Consultancy Services (TCS) to set-up and operate Power Exchange at national level. The JV company would be registered as a Public Limited Company with an authorized capital of Rs 50 crore for setting up the power exchange to provide neutral and transparent electronic platform for power trading. The exchange would also ensure clearing of all trades in an efficient manner with access to all the players in the power market. (The Economic Times, Aug 10, 2008)

NTPC commissions 500 MW unit of Sipat power project NTPC Ltd said that a 500-MW unit of Sipat Super Thermal Power Project in the state of Chhattisgarh has been successfully synchronised on August 13. This is the second unit that has been commissioned in respect of Sipat Super Thermal Power Project slated to have an ultimate capacity of 2,980 MW. With the commissioning of this unit, the total installed capacity of the Company stands at 29,894 MW. (Business Standard, Aug 15, 2008)

NTPC's Dadri project on track NTPC Ltd’s 980 MW coal-based power generating station at Dadri in Uttar Pradesh, being established as part of the infrastructure for the Commonwealth Games, is expected to be commissioned according to schedule. The first unit will be commissioned by September 2009 and the second by January 2010, Mr. Jairam Ramesh, Minister of State for Commerce and Power, has said. (The Hindu Business Line, Aug 19, 2008)

NTPC to become 30,000 MW co by year-end: Country's largest power producer NTPC is all set to become a 30,000 Mw company this year after the commissioning of its 500 Mw plant at Kahalgaon in Bihar in November. The company, which plans to focus on hydro power generation, would produce its first unit of electricity next year, he said, adding the company has set a target to add 7,000 Mw of electricity to its total capacity only through hydro by the end of 2012. On the thermal side, although the company has ambitious targets but the ongoing tussle with the domestic coal companies, especially Coal India Limited (CIL), over the shortage of coal may upset NTPC's plans. (Business Standard, Aug 22, 2008)

NTPC seeks Govt nod to raise ECBs worth $25 b NTPC has approached the Government for free access to external capital markets for raising debt of around Rs 1.05 lakh crore (about $25 billion) in order to become a 50,000 MW company by 2012. The ECB would include Rs 60,300 crore in foreign currency and Rs 45,200 crore in rupee terms. NTPC wants to raise money in foreign as well as domestic currency without any ceiling. In the present scenario, the companies can raise up to $500 million a year through ECBs under the automatic route for import of equipments. Apart from this an additional $250 million can be raised for the said purpose with approval of RBI. (The Hindu Business Line, Aug 26, 2008)

NTPC importing 8.2 mt coal to reduce shortage In a bid to ensure availability of fuel, India's largest power producer NTPC has placed an order to import 8.2 million tonnes of coal to meet the shortfall in total requirement of around 125 million tonnes this fiscal. On an average, the company is facing a shortfall of 10-12 MT of coal per year. An import of 8.2 MT would be sufficient due to its high quality and low ash content. The company has been facing a shortfall from the domestic suppliers and had sought power ministry's intervention to resolve the crisis. (Business Standard, Aug 27, 2008) NTPC plans to source re-gasified LNG Even as a perpetual gas shortage to the tune of 6-7 mmscmd at its various gas-based power stations lead to under-utilisation of available capacities, NTPC is beefing up plans to source re-gasified LNG on a ‘single-offer’ basis from state-run companies such as GAIL, IOC & BPCL. Moreover, states are reluctant to procure power produced by NTPC on liquid fuel as it is costly. (The Financial Express, Aug 28, 2008)

INDUSTRY

 STATE / GOVERNMENT/ REGULATOR / POLICY

Adani in power purchase deal with Maharashtra State Electriciry Co Adani Power Ltd (APL) said it has received the Letter of Intent (LoI) from the Maharashtra State Electricity Company Ltd (MSECL) for supply of 1,320 MW of electricity, to be generated with domestic coal at Mundra, under competitive bidding process at Rs 2.64 a unit. The company has already signed two power purchase agreements (PPAs) with Gujarat Urja Vikas Nigam Ltd (GUVNL) for the supply of 1,000 MW of power produced from the Mundra I and II power projects, and another 1,000 MW from the Mundra III at Rs 2.89 a unit (with imported coal) and Rs 2.35 a kilo Watt hour (kWh) or an unit (domestic coal) respectively. Recently, Adani Power had received LoI for supply of 1,311 MW of power, also to be generated at Mundra, from Haryana Power Generation Corporation Ltd (HPGCL) at Rs 2.94 an unit (imported coal). With this, Adani Power has completed tie-ups of long-term PPAs of more than 4,500 MW. The company is setting up total generation capacity of about 9,900 MW and with this LoI, the long-term tie-up of nearly half of the output from its various generation plants has been achieved. (The Hindu Business Line, Aug 02, 2008)

Power ministry asks three states for big hydropower project sites The power ministry wants to adopt the so-called ultra mega power project, or UMPP, model to build hydropower projects in India, and has written to three states with high hydroelectricity potential to allocate one big site each for the purpose. The UMPP model calls for creating special purpose vehicles—firms that work with state governments and local bodies to acquire land and obtain environmental and other clearances. These vehicles are then transferred to the successful bidder of the project. The role of the state government is critical as hydropower projects take a big toll on the environment, besides displacing local residents. (Mint, Aug 04, 2008)

JSW Energy set for foray into power distribution JSW Energy will soon foray into the power distribution business as a part of its plan to become an integrated power company on the lines of Tata Power and Anil Ambani- promoted Reliance Infrastructure. Both the companies own power generation plants and also distribute power to retail and commercial customers. To start with, JSW Energy will bid for power distribution in Maharashtra. The company plans to bid for the likely privatization of power distribution in the four regions of the state under the franchise model. According to this scheme, successful bidders would not buy existing assets of the state-owned distribution entity, but would have the management rights to run their operations. Further the franchisees are required to make additional investments to improve performance. (Business Standard, Aug 07, 2008)

BEST files petition to get REL licence revoked The BEST (Brihanmumbai Electric Supply and Transport) undertaking, which is the sole distributor of electricity to the island city, has sent a petition to the Maharashtra Electricity Regulatory Commission asking it to revoke the Reliance Energy Ltd (REL) licence for distribution of electricity in the suburban area. The undertaking has shown inclination to supply power to the suburban area. In its submission before the commission, BEST counsel Mr. R. Srinivasan said that Reliance Energy has failed to provide to the commission details about its long term power purchase arrangements. The company has not disclosed to the commission details about where it will procure power from sources other than its Dhanu power plant and its power procurement arrangement with Tata Power. The Hindu Business Line, Aug 08, 2008)

Sops for power projects likely In a bid to boost capacity creation, in this Plan and beyond, the Union Power Ministry proposes to further rationalise the existing mega power policy under which additional concessions may be given. This will be available to companies creating capacities of 1,000 MW and above for thermal power and 500 MW and above for hydel projects. For the North-East, it will be hydel projects of 330 MW and above stated Sushil Kumar Shinde, Union Power Minister. On the new hydro policy, he said in order to give some incentives to companies investing in the North East, it had been decided to allow 40 per cent of the generation to be sold to merchant power producers. (The Hindu, Aug 13, 2008)

India to add 6,000 MW wind power by 2012 India is expected to expand its wind-based power plant capacity by 6,000 MW by 2012, but this could still be below the eleventh plan target for this period, a latest report says. The Ministry of New and Renewable Energy has fixed a target of 10,500 mega watts from 2007-12, but an additional generation capacity of only about 6,000 MW might be available for commercial use by 2012, as per research and project investment database firm ProjectsToday. This assumption is based on the progress at the ongoing projects and the plans announced by public and private sectors, it said. (The Hindu Business Line, Aug 14, 2008)

Gujarat eyes 400 mw from biomass waste In an effort to lessen dependence on burning fossil fuels and utilize renewable sources of power generation instead, the state government is now turning towards biomass waste for generating electricity. Gujarat Energy Development Agency that promotes renewable and green fuels has chalked out a plan to generate 400 MW of power in next few years through biomass. Over two dozen players have shown interest in biomass solid waste power projects and the government has already fixed a rate for power purchase from these developers. (Business Standard, Aug 20, 2008)

Power import policy on cards to boost hydel inflows That the country suffers from an 11 per cent power deficit is well known. With domestic capacity addition failing to keep pace with demand growth, every effort will have to be made to step up power availability, even if this means higher power imports. This, in fact, is the background against which reports indicating that the Centre is working on a power import policy from neighbouring Himalayan-rim countries should be seen. The focus, understandably, is on hydro-electric generation because of the geographical characteristics of countries such as Nepal, Bhutan and Myanmar, the rising cost of energy from fossil-fuels obviously making the search for alternatives even more pertinent. Given the geo-politics of the region, India’s private sector will need substantial official backing if the attainment of the Indian power import target of 5,000 MW by 2020 is not to be jeopardized. More important than Bhutan is the hydro-electric potential of Nepal totalling 83,000 MW of which 45,000 MW can be effectively exploited. (The Hindu Business Line, Aug 25, 2008)

Govt looks at sun and wind for energy Energy starved India is now looking at the sun and wind to throw in some light. The government is considering dishing out a range of incentives to both consumers and producers of eco-friendly alternative energy. The high-powered energy coordination committee headed by Prime Minister Manmohan Singh has identified solar power development on a “mission mode”. The government would identify goals, bottlenecks and state specific issues to formulate incentives for producers and users of renewable energy. The government is also examining introducing the system of emission trading to strengthen India’s negotiating position on climate change. (Hindustan Times, Aug 25, 2008)

Supercritical technology for power plants to save fuel The Centre has launched supercritical power programme on the lines of the US, Japan, Germany, Korea and Russia. The super critical technology will result in saving of about 4% of fuel and correspondingly less emission. With crude oil prices shooting through the roof, India, which is a signatory to the Kyoto Protocol, in order to support the technology in the thermal power projects, the government has decided that the methodology for the award of 7 units of 660 mw and 6 units of 800 mw would pave the way for progressive indigenization of supercritical technology. Currently, supercritical technologies are under installation at Sipat and Barh thermal power stations of NTPC. The Ultra Mega Power Projects are also being envisaged to be set up with supercritical parameters. Tata Power's Mundra project imported turbines from Toshiba and boilers from Doosan, Korea. (The Financial Express, Aug 26, 2008)

Siemens, Wartsila keen on decentralized plants Wartsila is looking to develop 20 projects in the decentralized captive power distribution business in India, with a total generation capacity of 1,000 MW. Each of these projects will range 25 MW to 300 MW. Wartsila India, however, wants the government to allot 5 million metric standard cubic metre per day (MMSCMD) of gas for decentralized gas power plants that meet a 60% thermal efficiency, criteria. Wartsila has an installed base exceeding 3,200 MW and over 250 decentralized power plants across the country at present. Besides, it also takes care of the operation and maintenance of 60 multi-fuel (high furnace oil, gas, coal biofuel) power plants on behalf of its customers, generating over 700 MW of power. Decentralized power generation helps tackle peak loads and provides perfect foil for renewable energy. (The Financial Express, Aug 29, 2008)

 BHARAT HEAVY ELECTRICAL LIMITED (BHEL)

Bhel to get preference for equipment supply Government said state-run Bharat Heavy Electricals (Bhel) will be given preference over others during the international competitive bidding process for manufacturing 660 MW supercritical units in the country. Government plans to invite bids for nine units of 660 mw supercritical equipment (boilers, turbines, generators) from NTPC for its seven projects and Damodar Valley Corporation (DVC) for its two projects. Even if Bhel is not the lowest bidder, it would be given the option to match the lowest bid in order to bag the project. Bhel has started manufacturing supercritical units in the country; the government would bring global players as well but in order to bring international expertise. Supercritical technology is used to reduce coal consumption and also reduce greenhouse gas emissions. (Business Standard, Aug 05, 2008)

Bhel bags first order to supply 800 mw supercritical units In a critical breakthrough, country's largest power equipment maker Bharat Heavy Electricals Ltd has won first ever contract worth Rs 2,500 crore for supplying 800 MW supercritical boilers. The company has received the Rs 2,500 crore contract from Andhra Pradesh Power Development Co for supply of 800 MW supercritical boilers. It would set up 1,600 MW (2x800) steam generator at Krishnapatnam Power Project of Andhra Pradesh Power Development Company Ltd (APPDCL). (The Economic Times, Aug 06, 2008)

BHEL bags Rs 400-cr Rwanda order Bharat Heavy Electricals Ltd (BHEL) on Friday announced it has got a Rs 400-crore order for setting up a hydro power plant in Rwanda. The order for the 2x14 MW Nyaborongo Hydro Electric Power Project is the first BHEL has bagged in the African nation. The scope of work in the project includes execution of hydro-mechanical and electro- mechanical packages for the project. BHEL would supply hydro turbines, generators, transformer s, controls, monitoring and protection system and switchgear. (The Hindu Business Line, Aug 09, 2008)

Bhel bags EEPC's top export award Bharat Heavy Electricals Ltd (Bhel), the country’s largest power equipment manufacturer has bagged Engineering Export Promotion Council (EEPC)’s Top Export Award for the year 2006-2007. The award, conferred on Bhel in the category ‘Star Performer in 2006- 07 : Project Exports - Large Enterprise’, was presented by Pranab Mukherjee, union minister for external affairs. The company received export orders worth Rs 2311 crore from twenty six countries in the last financial year (2007-2008). Currently, under its strategic plan, the company is planning a six-fold increase in its physical exports by 2012. (Business Standard, Aug 12, 2008)

BHEL lines up $2.5 bn investment in next 4 years BHEL has announced an investment of $2.5 billion (over Rs10, 000 crore) in the next four years to ramp up capacity to meeting the growing electricity needs. The investment is in line with the order book of the company, which has crossed the Rs1, 00,000 mark and is still growing. On the overseas expansion, the company is looking for acquisitions and is likely to appoint global consultants to advise them. Earlier BHEL had set aside Rs10,000 crore for overseas expansion and were scouting for companies on its own. (Mint, Aug 15, 2008)

Bhel target 6-fold jump in export earnings by 2012 Bharat Heavy Electricals Ltd has set an ambitious target to increase earnings from exports six-fold to Rs 8,000 crore in the next four years. To support its endeavor to increase presence in the international market, BHEL is also looking at acquiring companies abroad mainly to augment technological skills. The target countries are Europe and the US, he said, admitting that the company was in talks with some firms. (The Financial Express, Aug 20, 2008)

Power min blames Bhel for delays in project The power ministry has held Bhel responsible for delays in commissioning of power projects. Out of the 3,295 mw capacity addition target for the second quarter of current fiscal, Bhel has so far been able to add only 710 mw. The ministry is doubtful if the company would be able to commission the balance capacity in the remaining one-and-a- half months of this quarter. (The Economic Times, Aug 20, 2008)

BHEL fails to win Reliance Power contract Efforts of state-run Bharat Heavy Electricals Ltd, or Bhel, to secure an estimated Rs9,000 crore equipment order from Anil Ambani’s Reliance Power Ltd, or RPL, for the latter’s 4,000MW Krishnapatnam power project in Andhra Pradesh have failed over pricing issues. The power ministry has been trying to restrict overseas equipment makers from bidding for domestic projects unless they have a manufacturing base in India, and are also denying coal supply to electricity plants with foreign equipment. (Mint, Aug 22, 2008)

BHEL bags Rs 140 crore UAE order BHEL had won a contract for export of two gas turbine generating units worth Rs 140 crore in the United Arab Emirates. The order, from International Energy Resources, is for two units of 42 MW each. With this, BHEL has been able to secure orders for six gas turbine generating units from UAE with a cumulative value of Rs 450 crore in a short span of just 11 months. (The Hindu Business Line, Aug 27, 2008)

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