New Delhi: After formally taking over Bharat Heavy Plate and Vessels last month, state-run Bharat Heavy Electricals today placed the first commercial order to BHPV.
The order includes manufacture and supply of 680 MT of boiler components such as drums, headers, riser tubes, panels, coils and piping products, a company release said.
Considering BHPV’s working capital condition, BHEL has issued raw material for the above order free of cost, and the first batch of raw material has already reached the place of work, it said.
BHPV’s turnover is expected to cross Rs 1,000 crore in five years and the company plans a capital expenditure of Rs 236 crore in three years, the release said.
BHPV is being developed as a dedicated centre for industrial boilers, ensuring better delivery. The current cost structure of BHPV is similar to BHEL but is expected to come down due to factors like increased volumes, better financial capability leading to lower working capital borrowing costs, etc, it added.