Coal-linkage issue to be sorted out in two years: Bhel

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The coal linkage issue, which was a reason for shrinking of the market will be sorted out within two years, Bhel Chairman and Managing Director B Prasada Rao said today.

"We are sure the government is looking at it and are hopeful that issues will get sorted out within a couple of years. It is only an

internal issue with certain policy decisions taken. The linkage made available for thermal power plants will be much more accessible in the years to come. We are optimistic that things will improve," he said. In the meantime, Bhel was embarking on a strategic plan to improve their business, he said.

Instead of getting contractual orders for boilers and other equipments for power plant, Bhel is looking at EPC model namely Engineering, Procurement and Construction commissioning capability thus enlarging scope of offer in Power Sector.

Bhel had already entered into JV with NTPC by creating manufacturing base for certain power plant equipments. The public sector was also entering into smaller business areas like transportation, transmission and renewable energy which will get more attention so as to maintain a balanced portfolio, he said.

In addition, Bhel is also working with GE India to offer water management solutions for the power sector, Rao said.

In transportation segment, the production capacity at Bhel's own plant at Jhansi is being enhanced to 75 locomotives per year as against 50units. Next year, it will almost be doubled to churn out 100 locamotives, Rao said.

With 20-30cities going in for metro rail system in the future, Bhel has inked a tie up with Japanese major Hitachi to roll out metro rail vehicles.

Bhel will be investing substantial amount to create facilities for controls and instrumentation systems development in Bangalore, for traction motors in Bhopal and construction of coaches and locos in Jhansi.

Rao said the Bhel was on track for an investment of Rs 1,000 crore, almost equally shared by transmission, transport and renewable energy segments.

Earlier, formally inaugurating the 23rd Bhel annual quality circle summit 2012 hosted here at Bhel Trichy Complex, Rao said that adherence to quality will be the mantra for the future as the market conditions globally and in India was witnessing a slow down, specifically in Power sector.

On performance of Bhel equipments, he said Bhel's thermal sets (coal based) generated 460 billion units during the year 2011-12 as against 435 billion units in the previous year, an increase of 5.63 per cent and contributed 75 per cent of the country's generation from thermal utility sets.

Rao was hopeful that Bhel will be able to maintain a top line growth of 20 per cent after witnessing an all time turnover Rs 49,510 crore clocked in the year ended on 31 March 2012.

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