BHEL mulls Rs.480 crore third phase expansion


Tiruchirappalli (Tamil Nadu) : The Rs.27,500-crore power equipment major Bharat Heavy Electricals (BHEL) plans to further expand its boiler plant facility here on an outlay of Rs.480 crore, a top company official said Friday.

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The state-run company has already spent Rs.190 crore in the first phase of expansion and the Rs.732-crore second phase is now under implementation.

“When the total expansion is completed by 2012, the plant capacity will increase to 20,000 MW in line with the corporate’s goal,” BHEL executive director V. Ananthakrishnan told reporters here, some 330 km from Chennai.

According to him, the company’s board will take a decision on the third phase expansion within a month.

In the third phase, BHEL is planning to set up a Rs.250-crore boiler component plant on 40 acres in Tirumayam near here.

In addition to the third phase expansion, the company is planning to invest Rs.362 crore to increase the manufacturing capacity of its seamless steel tube plant and set up a coal research centre.

Converting the Welding Research Institute here into a Centre of Excellence for Advanced Fabrication Technology is also on cards, Ananthakrishnan said.

He added that the boiler division contributed Rs.74.13 billion to the company’s turnover last fiscal, up from Rs.55.54 billion posted in 2007-08.

“The boiler division’s total order book position is Rs.27,100 crore. In 2008-09, we got orders worth Rs.155,00 crore,” Ananthakrishnan said.

“We got orders for 48 utility boilers, which include eight 60-MW boilers and 13 500-MW boilers, besides two 800-MW super critical boilers,” he added.