Bharat Heavy Electricals Ltd(Bhel), the country’s largest manufacturer of power generation equipment, has won two gas-based power projects with a combined capacity of 300MW in Oman even as there are concerns over its ability to manufacture enough to cater to the domestic market. “We have bagged an order from Petroleum Development Oman for constructing two power projects with generation capacities of 200MW and 100MW, respectively,” Bhel chairman and managing director A.K. Puri said.
In a related development, the company is looking at constructing a 300MW plant in Libya. It is also eyeing new opportunities in Oman and Saudi Arabia. “We are looking at developing gas turbine-based projects in these geographies,” Puri added.
Bhel posted a net profit of Rs2,385 crore for 2006-07 and ended the year with an order book position of Rs35,633 crore and revenues of Rs18,702 crore. The company plans to cross $10 billion (Rs 41,000 crore) in revenues by 2011-12.
However, doubts have been expressed in some quarters about the company’s ability to cope with additional orders at a time when it has fallen short of meeting domestic demand. A report by a government working group, submitted as an input for the preparation of the 11th Five-Year Plan (2007-12) for the power sector, noted that around 3,960MW could not be commissioned during the last Plan period (2002-07) due to delays by Bhel. Reacting to this, Ravi Kumar, director, power, at Bhel, said the company has “more than the adequate capacity to meet our targets.”
Bhel plans to double its manufacturing capacity from around 7,500MW to 15,000MW by December 2009. The company hopes to have a capacity of 20,000MW by the end of the 11th Plan period. “Bhel should adhere to this schedule,” said India’s former power secretary R.V. Shahi.
“We are confident of achieving our targets and if in case there are any constraints we can also source from Alstom and Siemens who are our partners,” said Kumar.