Bhel Bhopal in for Rs 148 cr expansion

To meet demands in the power sector, Bharat Heavy Electricals Ltd's Bhopal unit has lined up an expansion plan of Rs 148 crore to augment capacity in hydro turbines. The expansion involves the creation of a hydro unit and will be completed next year.

With this expansion the installed capacity of the hydro unit will swell from existing 760 MW to 2000 MW. The high-end motor production will go up from 700 units to 1,350 units and transformer production will touch 15,000 MvA capacity from existing 12,000 MvA.

"We have an ambitious plan to expand. We will set up a separate hydro unit with an investment of Rs 148 crore, of this Rs 35 crore will be for electrical machines, Rs 10 crore for transformer capacity expansion too," P T Deo, executive director of the unit told Business Standard.

Bhel is also planning to recruit a team of engineers and artisans. The Bhopal unit will create 250 jobs of artisans, 70 jobs of supervisors and 50 jobs of engineers.

Bhel is also learnt to be in the process of expanding its thermal (steam turbine) capacity subjected to its board approval. Although Deo refused to speak further on expansion he said, "modernisation and renovation of power plants and sub-stations are two areas, we are looking at."

The Bhopal unit, which has registered a turnover of Rs 1,825 crore during 2005-06 against Rs 1,534 crore of the previous year and profit (before tax) up 43 per cent to touch Rs 222 crore against Rs 150 crore of the previous year. It is expecting to attain a turnover of Rs 2,330 crore next year.

"Of this 10-15 per cent will come from exports," said Deo adding, "cost cut, quality improvement through correct management practice through six sigma will give us an edge over the private players in global and domestic market."

The unit mainly produces hydro and thermal turbines and specific motors and transformers and switch gears which are used in industrial units. The Bhopal unit has set a target to post a business of Rs 7,500 core in thermal and hydro equipment and Rs 1,000 crore in services by 2012.

Similarly its share in transmission and distribution will touch Rs 6,500 crore by 2012 that will include 60 per cent from transformers and 40 per cent from switchgears.