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Interaction | January 2015

Manufacturing focus of the country needs more power

B Prasada Rao, CMD, BHEL
Can you take us through the capacity additions plans?
We have done capacity addition of 1,167 MW in utility segment and 631 MW in captive segment till September 2014. Another 2,103 MW has been synchronised, awaiting inputs from customers. Our total orders booked up to second quarter stand at Rs 14,078 crore vis-à-vis Rs 4,470 crore last year. It consists of Rs 12,111 crore from power sector, Rs 2,248 crore from industry sector and balance from exports. This corresponds to 2,215.5 MW of power projects and 95.5 MW in industry sector.

Which are the major orders received by BHEL?
Major orders received in power sector include: India´s first ever EPC contract for 1x800 MW rating supercritical power project from Gujarat State Electricity Corporation for Rs 3,536 crore; 2x660 MW coal-fired supercritical thermal power project at Ennore SEZ from TANGEDCO on EPC basis worth Rs 7,800 crore.

How about your order book position in the industrial and transformer segment? In the industry sector, major orders received are: 20 MW grid connected solar PV plant at Manamunda site on EPC basis from Green Energy Development Corporation of Odisha Ltd; 10 MW SPV power plant each on EPC basis from KPCL & NLC; 3 MW grid connected solar power plant each from DNHPDCL, OPCL; 30 MW STG for Emami and 18 MW STG for Wonder Cement.

With these orders, BHEL has an order book of Rs 103,700 crore as on 30th Sept 2014.

Can you give us some indication of your expectation of the market in FY16?
Once these coal issues are going to be sorted out which we are seeing that from December onwards, this auction process will start and by February they will complete that. Even if it extends up to March, next year onwards it only should improve and already there is a realisation that power generation has to happen, otherwise´Make in India´ and all these things will not happen.

Particularly, the manufacturing focus of the country needs more power. It is not like information technology earlier which has bailed the country out for the GDP growth and now it is going to depend more on manufacturing and which needs power. So we are seeing that there are lot of projects which are in the planning stage and all that will start happening once there is a confidence that yes, there is a fuel linkage.

Do you think that India in the future can export coal to other countries?
I have been hearing the Minister for Power stating that in another two-three years´ time, you must reach a position of exporting coal to other countries. So that means they have plans for really putting Coal India into a traction mode where the production has to go up in coal and by our own initiatives also at this point of time. By providing flexibility in boilers that they can use, in fact any kind of coal in any mix like imported versus indigenised should provide flexibility for the customers. They can now plan a project without getting so much worried about whether they get indigenous coal or imported coal.

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