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PostPosted: Tue Apr 07, 2009 6:00 pm 
Ancillary units expect 50% more orders from BHEL Tiruchi

Tiruchi, April 3 : Ancillary units, mostly SMEs, that do fabrication jobs for Bharat Heavy Electricals Ltd’s Tiruchi unit, see prosperity ahead as the public sector power equipment giant has planned for a 50 per cent increase in outsourcing this year.

In 2007-08, BHEL, Tiruchi, which produces boilers for power projects, got 2.8 lakh tonnes of steel fabricated by its ancillaries – up from 1 lakh tonnes in the year before. Orders placed (conversion charges) on the 320-odd units was Rs 428 crore, 64 per cent higher than in the previous year.

In the current year, BHEL Tiruchi has budgeted for outsourcing processing of 4.5 lakh tonnes of steel – 50 per cent more than last year.

“We are sitting in a comfort zone,” says Mr K.G. Muralidharan, President, BHEL Small and Medium Industries Association (BHELSIA).

More entrepreneurs are setting up ancillary units near BHEL. The vendor base is consequently expected to increase to 500 this year.

With the power sector being one of the few areas doing well in these times of economic slowdown, BHEL’s order intake was at a record level of Rs 59,000 crore in 2008-09, leaving the company with an order book of Rs 1,17,000 crore.

The share of Tiruchi unit was Rs 15,500 crore in terms of order intake. The unit begins this year with orders on hand worth Rs 27,150 crore – 50 per cent higher than in April 2008.

A few fabricators are putting in sizeable sums of money in doing up their facilities to match with anticipated business from BHEL. At least three units – Sunbeam Structurals, Regional Engineering Industries and Vasan Industries – have each invested around Rs 12 crore, mainly for importing machines that automate welding of boiler support structures.

Thanks to growing business, BHEL’s ancillaries need 5,000 more people.

Today, around 18,000 people work with these units.

Finding so many more people is going to be tough, says Mr Muralidharan.

The other problem the ancillaries face is the pace at which BHEL provides material to the ancillaries.

“Our work is governed by the ability of BHEL to give us material,” he says, adding that some ancillaries are asking for permission to supply fabricated products using “our own material”.

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PostPosted: Tue Apr 07, 2009 7:28 am 
BHEL Trichy seeks INR 480 crore for expansion

Bharat Heavy Electricals Limited's Trichy plant in Tamil Nadu has requested the company board to approve INR 480 crore plans for further expansion of facilities.

The Phase III expansion is expected to take the unit's capacity to 20,000 MW by 2011-12.

Phase I of the expansion entailing an investment of INR 180 crore was completed in 2007-08, which doubled capacity to 10,000 MW. Work on the INR 732 core Phase II is underway. On completion in two months, it will add another 5,000 MW to the plant capacity.

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PostPosted: Sat Apr 04, 2009 10:42 am 
“Capacity augmentation work to be over by May”

TIRUCHI: With robust orderbook and steady progress of capacity augmentation, Bharat Heavy Electricals Limited, Tiruchi Complex, is poised to increase its turnover to Rs. 9,506 crore in 2009-10 from Rs. 7,413 crore in 2008-09 (33 per cent growth over last year).

In 2007-08, the turnover was Rs. 5,554 crore and the profit before tax Rs. 1,512 crore. The profit before tax will go up to Rs. 2,358 crore from Rs. 1,603 crore in 2008-09, the Executive Director of BHEL, Tiruchi Complex V. Ananthakrishnan told presspersons on Friday.

Output to be increased

Highlighting the achievements made by the BHEL, Tiruchi Complex during 2008-09, he said 4.5 lakh tonnes of boiler components were despatched and that in accordance with the growth target of 40 per cent set for next year, the output will be increased to 6.3 lakh tonnes.

Production through outsourcing has registered an increase of 51 per cent over last year, he said, referring to the increase in sub-contractor base from 328 to 500 during the year.

Fossil Boiler, the largest product in the whole of BHEL, achieved an annual output of more than Rs. 4,270 crore. BHEL-make 200/210/250/500 MW thermal sets that form the backbone of India’s thermal generating capacity registered an impressive Plant Load Factor of 84.3 per cent and Operating Availability of 91 per cent.

All the six power stations awarded with the Minister of Power’s Meritorious Productivity Awards for 2007-08 are equipped with the generating equipment manufactured and supplied by BHEL.

The installed capacity of BHEL supplied utility sets rose to 87,646 MW, increasing the industry’s share in the country’s total installed capacity of 1,38,175 MW up to 64 per cent, he said.

During the year, orders were received for a record number of 48 utility boilers, which include eight 600 MW boilers and thirteen 500 MW boilers besides two 800 MW supercritical boilers, Mr. Ananthakrishnan said.

The year ended with the highest ever outstanding orders at Rs. 27,150 crore (up by 49 per cent over last year’s Rs. 18,170 crore). Fifty five percent of the orders to the tune of Rs. 15,500 crore were secured against International Competitive Bidding.

BHEL was able to overcome competition from Chinese companies, Mr. Ananthakrishnan said.

Sixty four per cent of the customers have placed repeat orders on BHEL, reposing their faith in its quality and delivery, and 36 per cent of customers have placed orders on BHEL on negotiation basis.

The BHEL synchronised 4,182 MW of power plant equipment during the year comprising utility and captive sets.

To a question on BHEL’s preparedness to leverage its technologies to manufacture equipment for nuclear power generation plants in future, Mr. Ananthakrishnan pointed out that BHEL has manufactured all the components of the inner vessel for the country’s first 500 MWe Prototype Fast Breeder Reactor being installed at Kalpakkam.

On capacity augmentation, Mr. Ananthakrishnan said the largest ever investment at an outlay of Rs. 731.72 crore to augment production capacity to 10,000 MW was under implementation and scheduled for completion by May, 2009.

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PostPosted: Fri Mar 27, 2009 7:04 am 
BHEL bags order for four steam generators

TIRUCHI: Bharat Heavy Electricals Limited (BHEL) has bagged an order from the Nuclear Power Corporation of India Limited (NPCIL) for supply of four steam generators for the country’s first 700 MWe nuclear power station, being set up at Kakrapar Atomic Power Project in Gujarat.

The order, won against stiff competition, is worth Rs.345 crore. BHEL will design, manufacture and supply these steam generators based on indigenous design developed by it.

The product will be manufactured and tested according to American Society of Mechanical Engineers (ASME Sec.III) Standards and is expected to meet various operation requirements as per customer’s specifications, a press release issued here on Thursday said.

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PostPosted: Wed Mar 18, 2009 7:04 am 
PG course in welding, quality engineering

TIRUCHI: The BHEL Education Society and PSG College of Technology, Coimbatore, are to jointly offer a one-year postgraduate certificate programme in welding and quality engineering for engineering graduates. According to a press release, engineering degree holders in mechanical, production, metallurgy, automobile, manufacturing and allied disciplines or equivalent are eligible to apply for the course. Course coordinator G. Buvanashekaran said that the course entails the candidate to undergo ASNT Level II certification programmes in all four Non Destructive Testing techniques and the Certified Welding Inspector programme of Welding Research Institute.

Applications forms can be downloaded from and Last date for registration is April 20. Entrance examination will be conducted at Coimbatore and Tiruchi on May 9 and the candidates will be admitted to the course on June 10.

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PostPosted: Thu Mar 12, 2009 1:36 pm 
Company Review: Bhel

Discussions with numerous industry experts suggest that capacity addition plans at BHEL’s four key plants – Trichy, Haridwar, Bhopal and Hyderabad – are ahead of schedule. This should allay concerns about execution for FY3/10.

BHEL’s Trichy plant (the company’s largest plant) should achieve enhanced capacity of 10,000MW (up from 5,750MW earlier) for its boiler in the next 1–2 months. Trichy is the main facility for large boilers (for thermal power), including super-critical projects, and accounts for 25% of revenues.

Haridwar, which is mainly focused on turbines for large-sized thermal plants, is expected to increase capacity from the current 5,250MW to 7,000MW by the end of this month and to reach 10,000MW by December 2009.
Order backlog

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PostPosted: Thu Mar 12, 2009 7:05 am 
BHEL develops three computerised systems

TIRUCHI: Towards reducing cycle time, improving transparency and facilitating speedy planning and loading of jobs to vendors, Bharat Heavy Electricals Limited (BHEL), Tiruchi, has developed three computerised systems: Computerised Cutting Plan alongside issue of materials to sub-contractors; online registration of sub-contractors, and product material directory for valves and sub-contracting (machining).


The computerised cutting plan is meant to avoid the time delay between issue of material and start of work. The practice so far has been to issue the material and obtain cutting plan from sub-contractors for scrutiny later on. Sub-contractors used to suffer from time loss in returning the excess material to BHEL or in collecting more material as per the requirement that could be determined only after preparation of the cutting plan. The new system paves way for furnishing of raw material cutting plan and procurement of materials simultaneously.

Likewise, online registration of sub-contractors could be completed within a month. So far, the process used to take six months, V Ananthakrishnan, Executive Director, BHEL, Tiruchi, said, inaugurating the systems here recently. Expressing happiness over the development of the computerised systems, Mr. Ananthakrishnan hoped that issue of materials would be accelerated in the next financial year to meet higher targets of production.

A. Chandrababu, General Manager, Outsourcing, said that the cutting plan system would also result in material economy. While the online sub-contractor registration would result in more transparency in operations, the product material directory would help in speedy planning, he said.

E. Kirubakaran, Senior Deputy General Manager, Outsourcing, made a presentation on cutting plan software. Explaining the salient features of online sub-contractor registration and product material directory, R.T. Rajan, Deputy General Manager, Outsourcing, said that under the former system, a subcontractor would receive an acknowledgement immediately after the registration.

The product material directory was now developed for valves and sub-contracting and machining groups and the integrated directory for all the outsourced products would now be available. The directory is a ready-reckoner showing sub-contractor-wise list for various approved items, he said.

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PostPosted: Wed Mar 11, 2009 9:54 pm 

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Self sufficiency in N-reactors needed

March 10: India is aiming at self sufficiency in all types of nuclear reactors, however, the country is yet to be self sufficient in Light Water Pressure Reactors and is dependent on imports.
Dr Anil Kakodkar, chairman of nuclear energy commission, said this while flagging-off a 25-metric ton special forging manufactured by the Ranchi-based Heavy Engineering Corporation (HEC). HEC has manufactured this special forging for light water reactors and the machine has been manufactured for delivery in BHEL’s Trichy site.

“India is self sufficient in many aspects but it has to be self sufficient in the light water pressure reactors and nuclear reactors too. We cannot depend on imports for long. Special forgings like the one prepared by HEC is a step forward towards self dependency in setting up indigenous nuclear reactors,” said Dr Kakodkar

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PostPosted: Thu Mar 05, 2009 10:31 pm 
திருச்சி, மார்ச் 5: திருச்சி பெல் நிறுவனம் அடுத்த நிதியாண்டில் 6.28 லட்சம் டன் உற்பத்தி செய்யும் என்று பாதுகாப்பு மேலாண்மை த்துறை பொது மேலாளர் நயினார் தெரிவித்தார்.

பாதுகாப்பு மேலாண்மை துறை பொதுமேலாளர் நயினார் பேசுகையில், பெல் நிறுவனம் ஒவ்வொரு ஆண்டும் தனது உற்பத்தி இலக்கை அதிகரித்து வருகிறது. அடுத்த நிதியாண்டில் 6.28 லட்சம் டன்கள் உற்பத்தி செய்யும். இதில் ஒரு லட்சத்து 65 ஆயிரம் டன்கள் பெல் தொழிற்சாலைகளுக்கானது. இவ்வளவு அதிகமான உற்பத்தியாக இருந்தாலும் அது பாதுகாப்புடன் கூடிய உற்பத்தியாக இருக்க வேண்டும்.

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PostPosted: Wed Mar 04, 2009 11:08 am 
BHEL to invest Rs.2,500 Million to set up manufacturing Plant at Tirumayam in TN

Sh. P. Chidambaram, Union Minister for Home Affairs lays Foundation Stone for the new unit.

As part of its manufacturing capacity expansion programme, Bharat Heavy Electricals Limited (BHEL) is setting up a new manufacturing plant in Tamil Nadu. The new unit is being set up by BHEL at an initial investment of Rs.2,500 Million and the project will be funded through internal accruals.

To be set up at in Tirumayam in Pudukottai district of Tamil Nadu, the plant is expected to provide direct employment to about 750 persons and indirect employment to nearly 3,000 people.
The foundation stone for the new unit was laid by the Hon’ble Union Minister for Home Affairs, Sh. P. Chidambaram in the presence of Sh. Rm. Subburam, MLA, Tirumayam, Ms. Reeta Harish Thakkar, District Collector, Pudukottai, Mr. K. Ravi Kumar, Chairman & Managing Director, BHEL, Directors on the Board of BHEL and other dignitaries.

In his address, Sh. P. Chidambaram lauded BHEL’s plan to expand its manufacturing capacity from the present 10,000 MW per annum to 20,000 MW by 2011. He said that it was a gift for the people of Pudukottai district to have a unit of BHEL being set up there, adding that even during recession; BHEL is on a growth path. Explaining his government’s approach, the Minister said it was not philosophies that decided the government’s decisions, but realities and ‘one should not underestimate the public sector’s strengths’. ‘In whatever field an investor is willing to put his money, we should welcome it’, he said. The Minister observed that the Indian economy should shift from about 60 per cent dependence on agricultural economy to higher dependence on industrial and service sectors.

In his welcome address, Mr. K. Ravi Kumar, CMD, BHEL, said that the plant would initially produce about 25,000 MT of boiler components. He expected the new plant to give indirect employment to more than 3,000 locals and achieve an annual turnover of about Rs.5,000 Million. Explaining the rationale behind selection of the site, he said that the site was chosen because of its proximity to the company’s Tiruchirappalli plant. The need for a new plant arose because of the huge production capacities required to meet the national power targets during the 11th and 12th plan periods.

BHEL has been committed to the nation’s power development programme and has reaffirmed its commitment to the Indian Power Sector by equipping itself for the future, by way of technology, facilities and trained manpower to meet the country’s power forecast for the 11th Plan and beyond. For this, the company has already enhanced its manufacturing capacity to 10,000 MW per annum and is further augmenting it to 15,000 MW per annum by December, 2009 and to 20,000 MW per annum by December, 2011.

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