Bharat Heavy Electricals Ltd has orders relating to power generation capacity of around 19,000 mw on hold, senior officials said.
In a recent investor conference, the proceedings of which were notified to stock exchanges, BHEL said that orders worth around Rs.25,000 crore, corresponding to power generation projects with aggregate capacity 19,000 mw, were “unexecutable” as of September 30, 2022.
It may be clarified that this 19,000 mw does not represent turnkey BTG orders, entirely. BHEL, in these orders, could be playing a variety of roles such as supplier of boilers (steam generators), turbine-generators, etc.
The 19,000 mw worth of thermal power projects are currently on hold for a variety of reasons. However, not of these projects will be eventually struck off BHEL’s order book. BHEL is hopeful that many of these projects will be revived. For instance, the 2×800-mw Uppur thermal power project of Tangedco in Tamil Nadu is likely to be revived, and so is the 2×660-mw Raghunathpur project of Damodar Valley Corporation (DVC). On the other hand, delays could be expected in at least two IPP projects – RattanIndia and VISA Power – that have been referred to NCLT.
Favourably positioned
BHEL officials said that the company was favourably placed (including being L1 in some cases) in several orders that included the flue-gas desulphurization (FGD) order for the 1×800-mw Vijayawada thermal power station of Apgenco. In the captive power segment, BHEL is hopeful of clinching an order by Chennai Petroleum Corporation Ltd (CPCL) that includes a 4×34-mw gas turbine generator, a 4×125 tph heat recovery steam generator and a 3×165-mw utility boiler.
Upcoming tenders
BHEL has estimated that FGD orders corresponding to around 15 GW of coal-fired power generation capacity are under various stages of tendering. Besides, tendering is also currently in progress for at least three large power projects including:
- NLC India (Talabira, coal, 3×800-mw, Odisha)
- NLC India (Neyveli Stage-2, coal, 2×660-mw, Tamil Nadu)
- NHPC (Dibang, hydro, 12×240-mw, Arunachal Pradesh)
Also read: BHEL Successfully Tests Its Highest-Rating Transformer
Order inflow
In Q2 (July to September) of FY23, BHEL reported an order inflow of Rs.12,004 crore that was significantly higher than the Rs.2,508 crore in the immediately preceding quarter (see table). Order inflow in Q2 of FY23 was dominated by a single large order of Rs.8,740 relating to the EPC order of NTPC’s 2×660-mw Talcher (Stage III) power project in Odisha. The power sector accounted for 84 per cent of the order inflows in Q2 of FY23, followed by industry with 12 per cent and exports with around 4 per cent. (See table above).
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