Bharat Heavy Electricals Ltd (BHEL) received new orders worth Rs.3,555 crore in the hydropower sector during FY21, making it the highest-ever in any year.
In an investor presentation, BHEL said that these new Rs.3,555-crore orders in the hydropower sector, including electromechanical works, were spread across several projects like Polavaram HEP (12×80 mw); Palamuru Rangareddy Lift Irrigation Scheme, Stage-1 (8×145 mw); Kaleshwaran Lift Irrigation Scheme, Link-2 (4×138 mw); Kaleshwaran Lift Irrigation Scheme, Link-4 (6×125 mw), etc.
In FY21, the total order inflow from the power sector was Rs.8,984 crore, out of which hydropower had a share of nearly 40 per cent.
The total order inflow in FY21 stood at Rs.13,472 crore that was dominated by the power sector with a two-thirds share. The industry sector followed with a 31.8 per cent share, while export orders accounted for the remaining 1.5 per cent. (see table).
The nuclear power industry is also likely to positive influence BHEL’s business in the ongoing year, FY22. BHEL has emerged L1 for a major tender by Nuclear Power Corporation of India Ltd (NPCIL). The tender is for 6×700-mw turbine island package, valued at nearly Rs.11,000 crore. BHEL is also favourably placed in a tender for supplying 12 units of 700-mw steam generators for nuclear power plants based on PHWR (pressurized heavy water reactor) technology, the presentation said.
In FY21, BHEL, along with its partners NTPC and Indira Gandhi Centre for Atomic Research (IGCAR) successfully completed technical aspects of R&D phase of advanced ultra supercritical (AUSC) technology. This technology is an advancement to supercritical technology currently being used in coal-fired power plants.
In the flue-gas desulphurization (FGD) business, BHEL maintained leadership position with a share of around 40 per cent in FY21, according to the presentation. BHEL also mentioned that in FY21 it achieved indigenization of critical FGD plant components like oxidation blower and its auxiliaries, wet ball mills, etc.
Order book position
BHEL’s outstanding order book position, as of March 31, 2021, was Rs.1,02,900 crore. The power sector had a dominant share of 82.5 per cent. Industry accounted for 11.1 per cent while exports had a small share of 1.5 per cent. It may be noted that export orders may include those relating to the power or industry sector.
Outlook
BHEL, in its presentation, noted that tenders for supercritical power plants with aggregate capacity close to 10,000 mw are expected to open in the near future. These include 660-mw and 800-mw rating units, mainly from, but not limited to, NTPC. A notable tender in the pipeline is for NTPC’s 1×800-mw Lara power project in Chhattisgarh. This project would be based on advanced ultra supercritical (AUSC) technology for which BHEL is building its competencies.
For more stories on corporate performance in FY21, click here.
