Bhel likely to get Bhopal project order

The Bharat Heavy Electricals Ltd's Bhopal unit is likely to get orders for the controversial Maheshwar Power Project.

The firm, which is on an expansion spree, had evinced interest in picking up a stake in the 400 Mw project, "which is being completed by a Union government entity".

According to BHEL, Bhopal, Executive Director, Deo, the Power Finance Corporation has taken the task of completing the project. The talks have reached an advance stage for placing orders for hydro turbines.

Although most of the state government officials in the department of energy are tight-lipped on the progress of the project, sources said, "the work has begun on the Rs 2,200 crore project after a long gap of five years."

The state cabinet has allowed the promoters to go ahead with the project by offering a counter guarantee.

The promoters were earlier asked to come up with the financial closure in a stipulated time frame.

"Work is in progress, the Power Finance Corporation is executing the task," Deo said. BHEL, due to protest against the project from various social organizations, is not joining hands with the project as equity partner.

"If they place orders with us for hydro turbine, they will be able save considerable cost, since we have a ready-to-go team for this kind of job," said Deo.

BHEL's Bhopal unit had already commissioned hydro turbines at Indira Sagar project. BHEL has chalked out an expansion plan for its hydro turbine units to upgrade capacity with an investment of Rs 200 crore. At present, BHEL manufactures 10/700 Mw hydro turbines.

"After expansion, our capacity will go up to 2500 Mw. Besides, the firm is also expanding the capacities of its transformer and switchgear division.

"The transformer division will be expanded with an initial investment of Rs 30 crore, which will increase the existing capacity from 12,000 MVA to 15,000 MVA, Later, it may increase the capacity to 30,000 MVA, with an additional investment of Rs 250 crore," a BHEL source said.

Similarly its switchgear capacity will go up to beyond 5,000 from existing 4000. "But switchgear expansion will go up if demand goes up," said the source.