New Delhi: Power equipment maker BHEL Tuesday announced an investment of Rs12,000 crore over the next four years to pick up equity in power projects and to ramp up its capacity to support the generation of about 20,000 MW.
“We want to ramp up our capacity, (and) by 2011 we plan to become a 20,000 MW company. Besides we also plan to pick up a 26% stake in more power plants... In all we have plans to invest Rs12,000 crore in the next four years,” CMD BHEL K Ravi Kumar told PTI.
Asked about the source of funding, he said, “It will come from internal accruals as BHEL is a cash-rich company.”
BHEL’s current manufacturing capacity can support power generation of 10,000 MW. It includes 2,500 MW of hydro electricity production, and 500 MW captive power plants for the industrial sector. A thousand MW is exported and the power plants coming up can generate 6,000 MW.
By the end of this fiscal, the company hopes to make equipment for generating 15,000 MW.
Currently, BHEL is operating at more than 100% capcity and ends up supplying supplying equipment to generate 11,500 MW. “We are supplying more than our capacity, we are providing equipment to produce 11,500 MW electricity,” he said.
BHEL has picked up a 26% stake in the 2x800 MW Udangudi project of the Tamil Nadu Electricity Board and plans to become a joint venture partner in more units.
But Kumar did not elaborate on whether some projects have been identified for equity participation.
The company, which recently signed a technology transfer agreement with UK-based Sheffield, is speeding up enhancing its casting and forging manufacturing capacity.
BHEL has an order book of Rs1,17,000 crore for the current financial year 2009-10.
BHEL is also anticipating orders for supplying and erecting equipment from NTPC for its (NTPC’s) joint venture with the Tamil Nadu Electricity Board.