BHEL may supply equipment to Bangladesh power plants

Bharat Heavy Electricals Ltd is eyeing contracts worth around Rs 7,900 crore in Bangladesh for supplying power generation equipment for gas-based and thermal plants with a combined capacity of 2,050 Mw.

This is part of the company's aggressive plans for increasing business in South Asian countries like Sri Lanka, Afghanistan, Nepal and Bhutan.

"We are planning to bid for tenders for Bangladesh power projects. We are also hopeful of receiving an engineering, procurement and construction contract from the Bangladesh government for setting up a 500-Mw coal-based power project in the country involving an investment of around Rs 1,600 crore," Chairman and Managing Director A K Puri told Business Standard.

Of the three gas-based power projects that BHEL is vying for in Bangladesh "" two projects are of 500 Mw each while the third plant is a 450-Mw project.

The Kuwait Fund and the World Bank will finance the 500-Mw projects, while the 450-Mw project will be funded by the Japan Bank for International Cooperation.

The BHEL is also planning to bid for setting up a 100-Mw Asian Development Bank (ADB) funded gas turbine-based plant at Sidhirganj in Bangladesh involving an investment size of Rs 500 crore.

The company believes that Bangladesh has immense potential given the low-installed base of power generation "" all of 4,000 Mw for a population of over 18 crore. Given its vast coal and gas resources, Puri feels there is scope for better utilisation of resources.