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Bhel may buy local engineering firm

Bhel may buy local engineering firm
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First Published: Sat, Mar 15 2008. 02 26 AM IST
Updated: Sat, Mar 15 2008. 02 26 AM IST
New Delhi: Bharat Heavy Electricals Ltd (Bhel), which lights three of every four homes in India, said it may buy a local engineering company to expand capacity.
The nation’s biggest power-equipment maker may buy a company of a “size of about Rs4 billion,” chairman K. Ravi Kumar said on Friday in New Delhi, where the company is based. He didn’t give details.
Bhel is seeking to expand capacity to help the country’s effort to add at least 600 gigawatt of electricity by 2030. India needs to generate about 13% more power to meet current demand.
The firm plans to complete the acquisition of Bharat Heavy Plate and Vessels Ltd in the first half of the fiscal starting 1 April, Ravi Kumar said. The cabinet had in November approved the takeover of unprofitable Bharat Heavy Plate by Bhel. As part of this plan, state-run Bharat Heavy Plate will become a unit of Bhel.
The company expects to win orders for as much as 2,000MW by April, Kumar said. Bhel is in talks with NTPC Ltd, the nation’s biggest power producer and others for orders, he indicated.
India plans to build three more 4,000MW projects to help meet a shortfall in electricity, a power ministry official said on Friday. The country, which earlier planned to build nine ultra mega power projects, will ask plant makers to bid for the contracts, Anil Razdan, secretary to the Union power ministry, said on Friday. He didn’t give details.
Bhel plans to raise its workforce by 19% to 50,000 by 2012 to meet its expansion plan, Kumar said. The company employs 42,000 people now.
India’s construction and power companies are facing a shortage of skilled manpower as they expand capacity to meet rising demand in the world’s second fastest growing economy.
Gautam Chakravorthy in Mumbai contributed to this story.
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First Published: Sat, Mar 15 2008. 02 26 AM IST
More Topics: Bhel | Engineering | Power | K.Ravi Kumar | Acquisition |