By Noor Mohd, IANS
New Delhi : State-owned power equipment manufacturer Bharat Heavy Electricals Ltd (BHEL) is poised to meet accelerating demand from new power projects as it has aggressively increased production capacity by spending Rs.32 billion ($814 million), says its top executive.
“Under a Rs.32 billion expansion programme, we have enhanced our power generation equipment manufacturing capacity from 6,000 MW a year to 10,000 MW a year as on Jan 1 this year. This will further rise to 15,000 MW a year by end-2009,” BHEL chairman and managing director Ashok K. Puri told IANS in an interview.
As a result, BHEL should be able to manufacture power generation equipment worth 56,000 MW in the 11th Five-Year Plan (2007-12), Puri said.
The company has contracts in hand to supply power generation equipment of 31,923 MW capacity and is ready to take on more 11th Plan power projects.
“Out of this, we can supply 9,775 MW of equipment from unused stock from the 10th five-year plan years,” he said.
BHEL is required to manufacture equipment capable of generating 26,148 MW to meet its existing supply commitments for the 11th Plan, which is less than half of its capacity, Puri pointed out.
That leaves BHEL with a huge unutilised surplus power equipment manufacturing capacity in the current plan period.
“BHEL shall therefore endeavour to secure as many orders as possible to maximise its capacity utilisation in the 11th plan period,” Puri said.
To avoid a likely delay in achieving commissioning of contracted power projects, the company has taken steps to ensure timely availability of critical equipment not manufactured in-house.
“The company has taken steps like enhanced utilisation of critical machines, procurement of additional construction tools and plants, vendor development and purchase supply management,” he said.
The company is also ramping up its technical personnel strength to ensure it is able to commission power generation projects according to the contracted schedules.
“Manpower is also being ramped up by the company in a commensurate and timely manner to meet the challenges,” Puri said.