Bharat Heavy Electricals Ltd (BHEL), India’s largest power equipment manufacturer, said it has signed an agreement with Shell, the Netherlands-based global energy and petrochemicals giant, for supply of gas turbines and generators over the next five years.
“Under the Enterprise Framework Agreement (EFA), BHEL will supply Gas Turbine Generator (GTG) packages to Shell in select locations including Asia-Pacific, Middle-East, Central Asia, Eastern Europe and Africa,” BHEL said in a statement. The company did not disclose financial details of the deal.
The EFA would act as a techno-commercial Memorandum of Understanding (MoU) to be followed by placing of orders by Shell for supply of equipment, a company executive clarified. The agreement covers supply of GTG packages in three categories – Frame 5 (26 Mw), Frame 6E (42 Mw) and Frame 9E (126 Mw) – for power generation and includes installation and commissioning services.
“The EFA will give BHEL an opportunity to extend its GTG business in untapped geographies globally,” the statement read. The equipment to be supplied as part of the deal would be manufactured by BHEL at its Hyderabad facility while the associated control systems would be supplied from the company’s Bangalore factory.
BHEL has a current equipment manufacturing capacity of 20,000 Mw. It has supplied around 200 gas-based turbines beginning 1986 to domestic and overseas customers.
The company’s share price at the Bombay Stock Exchange (BSE) today closed at Rs 232.4, up 0.6% as compared to previous close.
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