BHEL executes project without plan resources

The project is funded by a consortium of Indian agencies including BHEL, KPCL, public sector banks, financial institutions and Power Finance Corporation.

BHEL8217;s executive director A N Jagadeeswaran told PTI that this is the first project of its kind to be structured on the lines of independent power project with totally Indian funding, technology and equipment.

Very few of the so-called eight fast-track power projects with foreign funding has taken off in the country putting into difficulty the fund-starved state electricity boards in meeting ever-growing power requirements.

Jagdeeshwaran said with the commissioning of the two 210 mw units at Raichur ahead of schedule, KPCL saved substantial money by way of interest and project cost.

Financing has become crucial in the present environment with plan resources becoming increasingly scarce for power projects.

Lately, customers have also started demanding that suppliers of main equipment, which account for 55 per cent of project cost, provide supplier8217;s credit.

As none of the fast-track projects have sought to buy main equipment from this solely indigenous power equipment manufacturer, BHEL has strengthened its capability in arranging project finance to woo new power projects through domestic funding.

With improved debt-equity ratio, BHEL was now in a position to mobilise fairly large resources from its own balance sheet besides sanctioned line of credit of Rs 1,700 crore from Indian financial institutions IDBI, ICICI and IFCI.

The public sector company has provided supplier8217;s credit of over Rs 2,000 crore to a number of projects in the country. Arranging and syndicating financial packages from financial institutions and banks as in Raichur project could provide the answer for funding some of the new power projects, Jagdeeshwaran said.

BHEL8217;s southern division which executes power projects in Tamil Nadu, Andhra Pradesh, Karnataka, Orissa and Kerala, commenced, on July 17, work on the Rs 2,300 crore World Bank funded Talcher super thermal power project.

BHEL has secured the single largest order for boilers for NTPC8217;s four 500 mw units at Talcher. The project is to be commissioned within 36 months, Jagdeeshan said.

The southern region which has booked orders worth Rs 308 crore this year so far besides the outstanding order book of Rs 909 crore, is expected to get orders for one 500 mw unit for NTPC at Ramagundam in Andhra Pradesh on turnkey basis.

Jagdeeshwaran said it is in the process of securing the seventh 210 mw unit of Raichur thermal plant, two 250 mw units at Srimushnam and one 500 mw and two 210 mw units at Turicorin in the southern region.

It was also carrying out erection work two months ahead of schedule at two 500 mw units at Simhadri in Andhra Pradesh, he said adding the southern division was expecting orders for seven combined cycle plants in the region.

The seven are 108 mw combined cycle plant at Perungulam,108 mw at Kutralam, 100 mw at Samayapuram all in Tamil Nadu, 100 mw at Harihar, 50 mw at Ginigera, 200 mw at Bidadi and 106 mw at Nanjungud all in Karnataka.