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BHEL looking at equity option in power projects

Anil Sasi

To bid with NTPC for Sasan ultra mega project

New Delhi , Sept. 28

Equipment major Bharat Heavy Electricals Ltd (BHEL) is evaluating the option of picking up equity stake in upcoming power projects, especially those incorporating new technology. The State-owned company, which has decided to bid jointly with power major NTPC Ltd for the proposed 4,000-MW Sasan ultra-mega power project, is actively looking at the option of picking up minority stake in the project, if required.

"We are looking at the option of coming in as a minority partner to kick-start power projects, especially those involving new technology. The Sasan project would be using new supercritical technology... We will be jointly bidding with NTPC for the project with the option of picking up equity," the BHEL Chairman and Managing Director, Mr Ashok K. Puri, told Business Line.

He said the company would, however, not come in as a lead partner in a power project and would restrict its equity participation to minority stake only.

He also said a final decision on BHEL's equity participation in the Sasan project would be taken in the due course.

The Sasan project in Madhya Pradesh is proposed to be built using 800-MW supercritical sets for the first time in the country.

BHEL has already tied up to acquire new technology to produce thermal power equipment with supercritical parameters for the next higher rating 800-MW sets and above, he said.

"The NTPC-BHEL tie-up would mean combining the best of both the organisations in terms of our respective areas of core competence," Mr Puri said. The alliance could also be taken forward for other projects, even though a final decision on the issue is yet to be taken, he said. He also said the company would evaluate options to pick up equity stake in other power projects as and when suitable opportunity arises.

The NTPC-BHEL alliance gains significance in the wake of the Government's ambitious Ultra Mega project scheme, which envisages the setting up of around six 4,000-MW coal-based power projects across the country over the next few years.

Related Stories:
BHEL bags NTPC's Dadri power project contract
BHEL's power generating sets achieve record output

More Stories on : Power | Alliances & Joint Ventures | Bharat Heavy Electricals Ltd

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