BHEL to get negotiated projects each fiscal

But a condition was also attached that the power ministry will place certain orders upon BHEL on a negotiated basis price benchmarked through competitively bid projects every year. This means that while BHEL will continue to compete with global majors for projects under international competitive bidding (ICB), at the same time it will also have “assured orders” coming from central and state power utilities. The number of such projects will be decided jointly by the DHI and ministry of power.

As the value of contracts covered under the PPP policy is Rs 100 crore, the value of a project given to BHEL under the negotiated route would also not exceed Rs 100 crore, an official said. “While the number of projects may be more, the independent value of each project going to BHEL will not exceed Rs 100 crore,” the official said.

BHEL eyes foreign tie-up

New Delhi: BHEL will soon announce its technical tie-up with a leading global firm to manufacture boilers for the new 800 mw power sets, to be introduced in the country shortly. Global firms including IHI and Mitsubishi Heavy Industries (MHI) of Japan, Babcock-Hitachi and Alstom have been shortlisted for this tie-up. The final selection will be made at the company’s board meeting on August 29. BHEL is also eyeing acquisition of global operations of a French company, to be put up for sale in the coming months. Refusing to give details, a senior BHEL official said, this will be in the industrial turbine segment. — ENS