BHEL to acquire Bharat Heavy Plates & Vessels

Bharat Heavy Electricals Ltd (BHEL) plans to acquire Bharat Heavy Plates and Vessels Ltd (BHPVL) to augment its power-equipment manufacturing capacity. The decision is likely to be taken by the first half of next fiscal. Visakhapatnam-based BHPVL manufactures combustion systems, including industrial boilers and fired heaters, cryogenic systems, multi-player vessels, LNG import terminals and other utility systems to be used by power-generation units.

BHEL is looking for more domestic acquisitions in the engineering space. India plans to add about 78,000 MW of electricity in the 11th plan period. The country currently generates 141,000 MW of electricity annually through the use of coal, water, gas and other means. BHEL will spend Rs 4,200 crore to augment its capacity to make equipment to generate 15,000 MW of electricity by 2009, from the current 10,000 MW.

BHEL’s current order book is valued at Rs 82,000 crore, which is to be executed over the next three years. The company is also exploring international markets like West Asia and Africa for selling gas turbines and transformers.