th

8 April, 2013
Press Conference Address by
Shri B. Prasada Rao
Chairman & Managing Director, BHEL
to share the company's Performance
Highlights during 2012-2013
Sustaining Leadership...
Engineering New Growth Avenues
A Maharatna Company
A Maharatna Company
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Order Inflow (` in crore)
Turnover (` in crore)
Profit After Tax (` in crore)
R&D Expenditure (` in crore)
400
200
0
600
800
1000
1200
1400
2008-09 2009-10 2010-11 2011-12 2012-13
690
829
982
1199
4%
1248

214
264
303
351
385
0
100
200
300
400
500
2008-09 2009-10 2010-11 2011-12 2012-13
Patents & Copyrights filed (Nos.)
1835
4095
6333
8138
9298
4182
6583
9442
9270
10340
0
2000
4000
6000
8000
10000
12000
2008-09 2009-10 2010-11 2011-12 2012-13
Commissioning (MW)
Utility
Total
12%
10000
20000
30000
40000
50000
60000
70000
2008-09 2009-10 2010-11 2011-12 2012-13
59678 59037
60507
22096
31528
43%
28033
34154
43337
49510
0
10000
20000
30000
40000
50000
60000
2008-09 2009-10 2010-11 2011-12 2012-13
50015
1%
2000
1000
3000
4000
5000
6000
7000
8000
2008-09 2009-10 2010-11 2011-12 2012-13
3138
4311
6011
7040
(8%)
0
6485
10%
0
Sustaining Leadership...
Engineering New Growth Avenues
Sustaining LeadershipEngineering New Growth Avenues
BHEL a 'MAHARATNA' now
Highest-ever Turnover crosses 50,000 Cr. mark
Turnover and Net Profit more than double in 5 years
Highest addition of generating capacity of 10,340 MW during the year
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Major Highlights
Significant achievements made even while operating Existing Customers (Brand Loyalty)
in restrained business conditions.
?Continued Customer Confidence repeat order
secured from NPCIL for TG package for 2x700 MWe
for RAPP 7 & 8
?ONGC reposed faith by placing repeat order for
refurbishment & upgradation of four Oil Rigs at
Sibsagar
Repeat orders for
- Wellheads from Georgia and Oman - Jindal
Significant Orders
Petroleum Operating Company, Georgia and
31,528 Crore, worth orders secured - 42.7% higher
Amran Establishment LLC
than last year
- 1900 kW Slip Ring Induction motors from
9,627 MW Orders received more than double of
Mombasa Cement Ltd., Kenya
FY12 (3,934 MW)
International Ventures
?Secured orders for 8 nos. TG & 9 nos. Boilers for
?Enterprise Framework Agreement with Shell for supply
supercritical sets
of Gas Turbine Generator packages to select Shell
?EPC for 2x660 MW RRVUNL Suratgarh and SG & TG
locations
for 1x 500 MW NTPC Vindhyachal secured despite
MOU with Govt. of Tajikistan for setting up two Hydro
stiff competition
Power Projects (2x50 MW) on Zeravshan River,
?SG & TG for 2x800 MW Gadarwara project from NTPC
Tajikistan
?Order for 7 ESP packages for supercritical sets
beating the global competition
Power Sector
?28% growth in Spares & Services business segment
Expand offerings in nuclear segment for Balance of
El ectro-mechani cal package for 1,020 MW
plant control, Control centre instrumentation pkg.
Punatsangchhu-II & 720 MW Mangdechhu Hydro
beyond conventional island systems etc.
Power Projects, Bhutan
Technology Licensing Agreement for Flue Gas
32% increase in orders for Transformers, Reactors &
Desulphurisation systems to address environmental issues
Switchgears
Maharatna Status
?Consistent performance in a highly competitive
environment enables BHEL attain the coveted
'Maharatna' status and be counted among seven
select PSUs having this status
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Marketing Accomplishments
Engineering New Growth Areas
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2011-12 2012-13
(Provisional)
Change
Earnings Per Share ( ) ` 26.50 (8)
Megawatts Commissioned 10,340 11.5
Orders Inflow (` Crore) 31,528 42.7
R&D Investment ( Crore) ` 1,248
Patents/Copyrights filed (Nos.) 385 9.7
%
Turnover ( Crore) ` 50,015 1
Net Profit ( Crore) ` (8) 6,485
Net worth ( Crore) `
28.76
9,270
22,096
1,199
351
49,510
7,040
25,373 30,315 19.5
4.1
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Marketing of CHPs & AHPs as independent systems - manufactured subcritical set of 600 MW rating at North
stand alone orders received for Coal handling plant for Chennai
Meja Thermal Power Project (2x660 MW)
Commissioning of five power plants overseas in Libya,
Vietnam, Tajikistan, Indonesia and Ethiopia
?MoU signed with Indian Railways for setting up a green
field coach factory for Mainline Electric Multiple Unit
?385 patents and copyrights filed highest ever in a
year. Company's intellectual capital stands at 2170
patents and copyrights
?Highest rating SPV Power Plant orders of 10 MW each
?R&D investment at 1,248 Crore increase of 4.1%
from NTPC for Unchahar and Talcher
over last year
?Commissioned 5 MW grid-connected Solar Photo
?Turnover from in-house developed products and
Voltaic (SPV) Plant for KPCL at Mandya, Karnataka
services at 9,643 Crore - 19.3% of the turnover of the
company
?145 Technology Plans with over 1500 R&D projects
?Development of in-house products viz. 765 kV
identified for establishing self sufficiency in the areas
Transformers & Reactors, 1200 kV Transformer, GIS,
of UHV Transmission, Transportation, Ultra Super
Controlled Shunt Reactor etc. : orders for 765 kV
Critical Plants, Renewable energy, IGCC, Water etc.
Transformers & Reactors received from Megha
Engineering India Ltd. for Western UP Transmission
System upgradation and BIDCO for the upcoming
'SCOPE Meritorious Award' for Human Resource
3x660 MW Lalitpur TPS
Management; Two 'CII-ITC Sustainability Awards
2012' for Strong Commitment towards sustainability
through adoption of appropriate policy and procedures
Continued thrust on technology absorption,
localisation and procurement process to improve Engineering Export Promotion Council (EEPC)'s Top
efficiency and competitiveness viz. bulk tendering, Export Award - recognition for the twenty third
techno commercial MoUs, e-procurement, reverse successive year
auctioning resulted in significant savings of nearly
4 'ICWAI National Awards for Excellence in Cost
1. 5% i n mat er i al , di r ect l y i mpr ovi ng t he
Management'- recognition for the seventh successive
competitiveness
year
New suppliers (>1900): 20% more than that of last
Indian Chamber of Commerce 'PSE Excellence
year
Award' in the R&D, Technology & Innovation
BHEL's 500 MW thermal sets have achieved
Golden Peacock Awards for 'Sustainability 2012' and
consistent availability of more than 90% for the last six
'National Training 2012' by the Institute of Directors
years- testimony to BHEL's superior quality
7 employees won Prime Minister's 'Shram Awards' and
equipments
13 employees won ' Vishwakarma Rashtriya
Trombay 5 (500 MW) and Singrauli 5 (200 MW)
Puraskars'
clocked uninterrupted operation throughout the year
a testimony of BHEL's product excellence
3500 MW Capacity added in 2012-13 as against
1000 MW last year for NTPC. With this, BHEL's
contribution to NTPC's capacity of 41,184 MW stands
at 70%
R&M of Boiler at Satpura 7 (210 MW) enables it run at
full load even after 30 years
485 MW R&M jobs completed in a year highest ever
All time high 10,340 MW of power plant equipment
synchronized / commissioned including 9,328 MW
Utility, 703 MW Captive/Industrial sets in the country
and 309 MW in overseas markets
Commissioning of India' s first indigenously
Transportation
Technology & Innovation
Renewables
Transmission
Accolades
Operational Excellence
Customer Focus
Commissioning
A Maharatna Company
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CMD BHEL receiving 'SCOPE Meritorious Award for Human
Resource Management' from the Hon'ble President of India
Performance Details
Financial Performance
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?During 2012-13, BHEL recorded it
turnover of Crore. Profit Before Tax (PBT)
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was 9,231 Crore. Further, Net Profit (PAT) stood at
` 6,485 Crore.
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s highest-ever
` 50,015
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competition in domestic and overseas markets, BHEL
secured orders worth 31,528 Crore, during the year.
At the end of the year, cumulative orders in hand for
execution in 2013-14 and beyond, stand at 1,15,180
Crore.
The Indian Power Sector is witnessing a slowdown
An interim equity dividend of 106% was paid for 2012-
since the past few years. Issues of coal linkages, land
13, maintaining the track record of paying dividends
acquisition and fund constraints have resulted in non
uninterruptedly since 1976-77.
finalization of new projects, especially in the private
Earnings Per Share (EPS) was sector and some of the ongoing projects are on a slow
execution path.
Net Asset Value (NAV) per share went up to
In the Power Sector business segment, despite reflecting the intrinsic strength of the
these challenges and intense competitive pressure,
company.
BHEL has been able to secure orders worth 22,553
Total export turnover (Physical + Deemed) touched
Crore for supply and installation of main equipment.
23,935 Crore.
67% of the orders in the domestic market were bagged
Total turnover in spares business increased to 3,022
by BHEL.
Crore an increase of 8.9% over that of 2011-12.
Spares & Services business segment saw an order
inflow of 2,885 Crore, a 28% increase over that of
2,250 Crore in 2011-12.
Significantly, India Ratings & Research (Ind-Ra) has
affirmed BHEL's Long-Term Issuer Rating at 'AAA'
with a Stable Outlook. The ratings continue to reflect
Significant orders in the Power sector include:
BHEL's dominant position in the Indian power
equipment segment. According to the rating agency, 2x800 MW NTPC Gadarwara (SG & TG Pkgs.)
the appreciation of the Korean Won and Chinese
2x660 MW, OPGCL, IB Valley (BTG & Electricals)
Yuan, BHEL's better after-sales service, lower life
2x660 MW RRVUNL Suratgarh (EPC)
cycle costs of its sets and higher indigenisation of its
supercritical technology than that of other players will
2x660 MW DVC Raghunathpur (TG Pkg.)
make BHEL more competitive.
3x660 MW NTPC Nabinagar (SG & ESP Pkg.)
2x660 MW NTPC Mauda (ESP Pkg.)
Orders Inflow
2x660 MW NTPC Sholapur (ESP Pkg.)
Despite subdued business conditions in the Power &
1x500 MW NTPC Vindhyachal Stage-V (SG&TG Pkgs.)
Infrastructure sectors coupled with intense
Marketing Highlight
BHEL attains the coveted 'Maharatna' status through its consistent performance in a highly competitive
environment. During the year, BHEL continued to set new benchmarks in project execution and saw improved
order inflows while operating in a business environment that is witnessing subdued business sentiment.
Sustaining Leadership...
Engineering New Growth Avenues
5
CMD BHEL presenting the Interim Dividend Cheque for FY2012-13
to Hon'ble Union Minister of Heavy Industries & Public Enterprises
660 MW Turbine LP Rotor for Bara Project, under assembly
at HEEP, Haridwar
A Maharatna Company
?160 MW RRVUNL Ramgarh CCPP Stage-IV (BTG) Secured several transformer/switchgear orders
from various customers viz. PSTCL, NTPC, Reliance,
?2x700 MWe NPCIL RAPP 7&8 (TG, C&I & CCI Pkgs.)
Chhattisgarh, Dadra & Nagar Haveli, RRVPNL,
?2x700 MWe NPCIL KAPP 3&4 (CCI Pkg.)
TANTRANSCO, MPTTCL & Discoms and UP
Discoms, etc.
?3x57 MW NTPC Lata Tapovan HEP(E&M)
?Major order won for Coal Handling Plant package for
?7x500 MW NTPC Projects (ESP Retrofit)
Meja Thermal Power Project (2x660 MW).
?9x200/210 MW NTPC Projects (ESP Retrofit)
?Order for 7 sets of bus-ducts for 7x660 MW TPS from
?2x500 MW NTPC Projects (C&I Retrofit)
NTPC (Nabinagar, Mauda & Solapur).
?7x200/210 MW NTPC Projects (C&I Retrofit)
Target markets for International Business in the last
In its Industry Sector business segment, BHEL
few years witnessed economic uncertainty and
secured orders worth 4,086 Crore for a wide variety
political turmoil, thereby severely affecting capital
of products and systems for application in Captive
investments. New projects are not forthcoming and
Power, Transportation, Transmission, Oil & Gas,
planned projects are also being deferred. Under such
Renewable Energy and other Industrial products.
circumstances, the company has been able to secure
Significant orders received in the Industry Sector
orders worth 2,004 Crore. This included power plant
include:
equipment orders totaling to 1,760 MW.
?Received order for indigenously developed 765 kV
transformers and shunt reactors from Megha
Engineering India Ltd. for Western UP Transmission
System upgradation and BIDCO for the upcoming
3x660 MW Lalitpur TPS.
?Continued Customer Confidence - ONGC reposed
faith by placing repeat order for refurbishment &
upgradation of four Oil Rigs at Sibsagar.
?Highest value orders for motors - 10 nos. vertical
synchronous motors for Chintalapudi Lift Irrigation
Scheme in Andhra Pradesh. This order will help in
establishing BHEL in the irrigation sector as a motor
supplier with pump OEMs.
?Orders in Captive Power Segment for:
- 13.5 MW Extraction BPTG for Nalco, Damanjodi
- 33 MW STG for Aditya Birla Chemicals Ltd
Significant orders received in International business
- 23 MW STG for Paradeep Phosphate Ltd
include:
?Record orders for Well Heads & X-Mas Trees from
?Bhutan:
ONGC, OIL, and other drilling companies.
- 1,020 MW Punatsangchhu-II Hydro Power
?Orders in transportation sector for:
Project - Electro-mechanical package for 1,020
MW Punatsangchhu-II Hydro Power Project
- 347 sets of Electrics for conventional AC
secured, reaffirming the customer's confidence in
EMU/DEMU; 646 nos. of Traction Motors & 196
BHEL's capabilities.
nos. Traction Alternators received from Indian
Railways against stiff competition from local and - 720 MW Mangdechhu Hydro Power Project -
foreign suppliers. Electro-mechanical package of 720 MW
Mangdechhu Hydro Power Project received. With
- Single-largest order for 47 sets of Power
this, the total capacity contracted by BHEL in
Converters with Control Electronics for 6000 HP
Bhutan has reached 4,356 MW (around 98% of
WAG-9 locomotives from CLW.
Bhutan's total capacity).
- 19 nos. Diesel Electric shunting locomotives in the
- Transformer Package for Punatsangchhu -II
range of 350-1400 HP from various non-railways
Hydro Power Project received against stiff
customers.
competition. This is the fifth consecutive order in
?Secured orders against competitive bidding for
the last two years received from Bhutan.
400/132 kV Switchyard at Nabinagar from NPGCL and
?Burundi: 2x10 MW Kabu Hydro Power Plant -
for 220 kV Pusauli & Dehri Substations from BSEB.
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4x125 MW Kosti Thermal Power Plant, Sudan
successfully made maiden entry into Burundi by Sakoli, District Bhandara and to also consider
securing an order for Electro-mechanical package for possibility of setting up an integrated facility for the
2x10 MW Kabu Hydro Project. manufacturing of Solar Photo Voltaic systems, with the
first phase envisaging manufacture of PV modules
?UAE: Fr 6B GT Rotor - Reposing its faith in BHEL,
from cells with ultimate objective of expanding to cover
M/s IER, UAE has placed an order for a Fr 6B Gas
full value chain from silicon to cells.
Turbine Rotor, following the delivery of 4 nos. Fr
6B Gas Turbines by BHEL to IER.
?South Africa: Entry into a new market segment - an
order for OLTC for transformer was secured from
M/s. Absolute Africa.
?Repeat orders for:
- Wellheads from Georgia and Oman - Jindal
Petroleum Operating Company, Georgia and
Amran Establishment LLC placed repeat orders
strengthening BHEL's growing reputation in the
international oil field equipment market.
- Control Equipment from USA - Bus Extension
Module secured from Metso Automation, USA.
- Motors from Kenya - 1900 kW Slip Ring Induction
motors from Mombasa Cement Ltd., Kenya.
?Continued focus on After Sales Services led to
?Rate Contract finalised with Reliance Industries Ltd.
orders for Spares & Services from different parts of
for supply of 160-470 KW HT motors for their projects
the world including Afghanistan, Bangladesh, Bhutan,
at Hazira, Jamnagar and other sites.
Georgia, Indonesia, Iran, Jordan, Kenya, Libya,
Malaysia, Malta, New Caledonia, Nigeria, Oman, Sri
?MOU signed with the Ministry of Energy and Industry,
Lanka, UAE, United States and Yemen.
Tajikistan for setting up of two Hydro Power Projects
(2x50 MW) on Zeravshan River, Tajikistan.
?Enterprise Framework Agreement (EFA) signed with
Aimed at maximising business through mutually beneficial
Shell for the supply of Gas Turbine Generator (GTG)
strategic tie-ups, BHEL signed / formalized the following
packages to select Shell locations in Asia-Pacific,
alliances during the year:
Middle-East, Central Asia, Eastern Europe and Africa.
This EFA is consistent with BHEL's efforts to establish
long-term relationships with key customers who can
bring long-lasting value to the company.
A Technology Licensing Agreement entered into with
MHI, Japan for Flue Gas Desulphurisation (FGD)
Systems required for SO removal, both in the Power
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as well as Industrial segments.
BHEL made a capital investment of 753 Crore during
2012-13 towards augmentation of manufacturing
capacity and modernisation of facilities in
manufacturing units and at power project sites.
Focused attention was given on rebuilding and
retrofitting of existing facilities to enhance their life,
?MoU signed with Indian Railways for setting up a
accuracy and productivity through an investment of
greenfield Mainline Electric Multiple Unit (MEMU)
83 Crore.
coach factory in Rajasthan to cater to the growing
?BHEL is augmenting its manufacturing and testing
demand for more local and suburban trains.
facilities for 800 kV HVDC Transmission Systems;
?MoU has been signed with Govt. of Maharashtra for
and for IGBT based propulsion systems for AC EMUs
setting up a Power Equipment Fabrication Plant at
& 6000 HP AC Locomotives.
Strategic Alliances
Ca pa c i t y Augme nt a t i on & As s e t
Modernisation
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Sustaining Leadership...
Engineering New Growth Avenues
7
Signing of MoU with Indian Railways for Greenfield
MEMU facility in Rajasthan
New Automated Solar Photovoltaic Panel manufacturing facility
at EDN, Bengaluru
?As part of major Capacity Augmentation for - Kavaratti (760 KW);
modernization and upgradation of the Hot Mill of the
- Kadmat (270 KW).
Seamless Steel Tube Plant at Tiruchy, envisaging
?With this, BHEL has commissioned a total of 1900 KW
more than two-fold increase in capacity to 86,500 MT
SPV Plants at various Islands of Lakshadweep. This is
per annum, production trials are under way, with key
the largest Island electrification programme using
facilities including the Rotary Hearth Furnace, Walking
SPV modules.
Beam Furnace and Stretch Reducing Mill having been
commissioned. This will ensure secured supply chain
?Orders have been received for 2 SPV Power plants for
for one of the key inputs for boiler manufacture. With
Unchahar and Talcher of 10 MW each from NTPC.
introduction of state of the art technology, yield will
This is the highest rating SPV Power Plant order
substantially improve, enhancing competitiveness.
received by BHEL so far.
?As part of its commitment towards green initiatives and
contributing to sustainable development, BHEL is
establishing a 5 MWp grid-interactive SPV power plant
at its Boiler Auxiliary Plant at Ranipet.
?Towards preserving environment and to reduce
emission of green house gases, BHEL has initiated
conversion of Diesel Oil operated furnaces to Natural
Gas at its Central Foundry Forge Plant at Haridwar.
?BHEL has been contributing to the national effort for
developing and promoting eco-friendly renewable
energy based products on a sustained basis.
During the year, significant renewable energy projects
commissioned:
?5 MW grid-connected Solar Photo Voltaic (SPV) Plant
for KPCL at Mandya, Karnataka.
?BHEL continued its commitment towards environment
?SPV Plants at various islands of Lakshadweep:
conservation with the completion of several
- Andrott (320 KW);
Environment Improvement Projects (EIPs). These
projects helped in enriching the environment &
conservation of precious resources like energy, water,
fuel oil, coolant, lubricant, mitigating environmental
pollution. Major EIPs included plantation of trees in
and around units/sites, rainwater harvesting projects,
energy & resource conservation projects, utilization of
non-conventional energy sources, noise level
reduction system, chemical storage & handling
system, etc.
Project Commissioning
?BHEL synchronized / commissioned an all time high
10,340 MW of power plant equipment during the year
inclusive of 9,328 MW Utility and 703 MW
Captive/Industrial sets in the country and 309 MW in
Renewables & Green Initiatives
Operational Achievements
A Maharatna Company
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Shri Praful Patel inaugurating new Billet Charging Machine
at BHEL Tiruchy
500/600 MW rotor forgings facility at CFFP Haridwar
Grid connected 5 MW Solar PV plant in Karnataka
Sustaining Leadership...
Engineering New Growth Avenues
overseas markets. This included 10 nos. 500 MW and ?For the first time in India, Gas Turbine, commissioned
1 no. 600 MW thermal sets. by BHEL, was run with Refinery Fuel Gas for HMEL's
GGSR refinery.
The installed capacity of BHEL supplied Utility sets
went up to 1,15,500 MW and BHEL maintained its ?The year also witnessed the commissioning of five
lion's share of 57% in the country's total installed power plants in overseas markets in Libya, Vietnam,
capacity comprising Thermal, Hydro and Nuclear Tajikistan, Indonesia and Ethiopia.
Sets. BHEL Contributed to 56% of capacity added
Major power projects commissioned include
during last quarter.
?1x600 MW Unit-2 for TANGEDCO North Chennai
?A major milestone of the year was the commissioning
?2x500 MW Units-11 &12 for NTPC Vindhyachal
of India's first indigenously manufactured subcritical
?2x500 MW Unit-1 & 2 for NTPC Mauda
set of 600 MW rating at North Chennai.
?1x500 MW Unit-3 for APCPL Jhajjar
?BHEL's first two-cylinder uprated 150 MW (Reheat)
?1x500 MW Unit-2 for DVC Koderma
rating turbine in the industrial Segment was
commissioned for HINDALCO at Mahan. ?1x500 MW Unit-2 for NTPC Vallur
?1x 500 MW Unit-5 for NTPC Rihand Successfully commissioned the first unit of ONGC
Thermal Power Corporation (OTPC)'s 726 MW Gas
?1x500 MW Unit-6 for GSECL Ukai
based Power Plant at Palatana, in state of Tripura.
?1x500 MW for CSPGCL Korba West
Given the non-availability of adequate road
?2x270 MW Unit-1 & 2 for Adhunik
infrastructure, consignments had to be transported via
?1x270 MW Unit-1 for IEPL Bela
Bangladesh (under special agreement with the
Government of Bangladesh) partly by road & partly by
?1x270 MW Unit-1 for EPIL Amravati
water ways with enroute ports of Karaikal,
?2x250 MW Units-5&6 for UPRVUNL Parichha
Machilipatnam, Kolkata and Ashuganj.
?1x250 MW GTG-3 for PPCL Pragati
?1x110 MW GTG for RRVUNL Ramgarh
?4x11 MW Hydro sets for NHPC Chutak
?1x157 MW GTG in Libya
?1x100 MW Hydro set in Vietnam
?2x4.75 MW Hydro sets in Tajikistan
?1x12.5 MW STG set in Ethiopia
?1x150 MW BTG for Hindalco Mahan
?2x60 MW STG for JP Associates
?1x80 MW STG for OPG Energy Gummudipoondi
?1x80 MW STG for Sterlite
?1x43 MW STG for Action Ispat
?1x43 MW STG for SMPL
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2x363 MW Gas based Power Plant, OTPC - Palatana
Unit 1 of 2x270 MW Adhunik Power TPS, Jamshedpur 2 x 600 MW North Chennai TPS, Chennai
?1x21 MW STG for Bongaigaon ?Following successful Renovation & Modernisation
work, synchronisation of both the units of the 2x65 MW
?1x250 MW Unit-9 for UPRVUNL Harduaganj
Subarnarekha Hydel project of JSEB was completed
?2x250 MW Unit-1 & 2 for BPSCL Bina
in a record time of 4 months.
?1x250 MW Unit-10 for MPPGCL Satpura
In the execution of the 2xFr 5 GTG at Mina Al Refinery
?363.3 MW CCPP for OTPC Palatana
in Oman, all works were completed in record time in
?1x351 MW Unit 2 for GSECL, Pipavav Refinery
challenging conditions. The customer appreciated the
?1x20 MW BTG for Maruti Suzuki
exemplary support given by BHEL engineers during
?1x38 MW STG for Wonder Cement the execution of this project.
?70% of the country's total generation of 691.4 Billion
Units from Thermal Utility Sets was contributed by
BHEL supplied sets.
BHEL make 200-500 MW thermal sets, which form the
backbone of the country's thermal generating
capacity, operated at a Plant Load Factor (PLF) and
Operating Availability (OA) of 77.4% and 89.4%
respectively. Of these, 13 stations achieved PLF of
over 90%.
BHEL's 500 MW thermal sets have achieved
consistent availability of more than 90% for the last six
years. 170 coal based sets achieved OA higher than
90%.
167 BHEL supplied coal based sets clocked
uninterrupted operation of more than 90 days during
the year out of which, 53 sets ran twice continuously
for more than 90 days and 29 sets ran continuously for
BHEL continues to provide specific thrust on
more than 200 days.
competitive buying by leveraging the technology and
?Trombay 5 (500 MW) and Singrauli 5 (200 MW) adopting modern tools like procurement through
clocked uninterrupted operation throughout the year
reverse auction which touched a record high of 36%.
a testimony of BHEL's product excellence.
This coupled with thrust on introduction of new
suppliers (addition of over 1900 suppliers on a base of
?110 MW Unit-3 at GNDTPS, Bathinda is running
approx. 20,000 registered suppliers) resulted in successful l y at 120 MW post Renovati on,
Modernisation and Uprating. significant cost savings in procurement of Raw
materials/components. In addition, better inventory
?Central monitoring system yields completion of
management has resulted in reduction of inventory
Performance Guarantee Test for 58 nos main plant
levels from 100 days of turnover to 83 days, optimizing
packages.
working capital management.
Continued Customer support
In line with Govt. of India's policy on MSMEs, issued in
BHEL reinforced its commitment in providing prompt
2012 to promote Micro and Small Enterprises (MSEs),
and efficient service to its customers aimed at
BHEL arranged 15 MSE supplier meets including 2
facilitating uninterrupted power supply and keeping
specifically for MSEs belonging to SC/STs.
power plants in good running condition. During the
year, BHEL overhauled 176 thermal utility/captive
Continued Thrust was given for improvement in
sets.
procurement processes with a view to improve
efficiency in terms of competitiveness, implementation ?Responding to the customer's emergency call, BHEL
took up on war footing and completed the of latest technology, expansion of vendor base and
troubleshooting and restoration of the PA Fans of 500 transparency in procurement.
MW Unit-4 at Bhusawal TPS bringing back the unit in
the shortest possible time in the critical monsoon
season in the state. BHEL's efforts were lauded by the The R&D efforts of the company are aimed at improving
customer Mahagenco.
the performance and efficiency of existing products, and
also developing new products using state-of-the-art
Equipment Performance
Supply Chain management
Technology & Innovation
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A Maharatna Company
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Reclaimer 1 and Conveyor 16B at NTECL Vallur TPP
technologies and processes. Focus is on the relevance to BHAVINI, a state-of-the-art unified C&I platform
the needs of the country to remain contemporary both in involving major equipment like Steam Generator,
Turbine, Auxiliary Boiler and Station C&I has been terms of technology & features vis--vis global
designed and implemented. benchmarks.
?To improve the stability and reliability of power BHEL has emphasised innovation through in-house
systems, BHEL has developed and manufactured a 3- R&D efforts and R&D investment grew 4.1% over the
Phase, 315 MVA, 400 kV class, Phase Shifting
previous year to 1,248 Crore. The turnover from in-
Transformer with state-of-the-art features. It will be
house developed products and services has clocked
installed at APGENCO Kothagudem.
9,643 Crore, which is around 19.3 % of the turnover
of the company.
?In the area of renewable energy, a cost-effective 250
kW grid-connected Power Conditioning Unit (PCU)
BHEL also filed the highest-ever 385 patents and
has been devel oped, commi ssi oned and
copyrights in a year, enhancing the company's
synchronized with the grid.
intellectual capital to 2,170 patents and copyrights
filed, which are in productive use.
To enhance overall solar energy absorption during the
day by PV arrays, BHEL has developed a modular
Design Automation and Knowledge Based Engineering
solar thermal sun tracker which operates on a novel
(KBE) taken up for all major products across the
liquid balancing system. It enables generation of 25%
company to offer optimized benchmark solutions.
additional energy during the day.
BHEL has developed a mathematical model for
predicting the dynamic behavior of 182 MW Integrated
Gasification Combined Cycle (IGCC) plants. This has
been used to carry out dynamic simulations for
possible disturbances in the plant and to develop
control systems.
BHEL has developed a new variant '300 MW Steam
Turbine' with 3.9% improved heat rate by optimizing
the flow paths of HP, IP and LP turbines, while keeping
the existing turbine module combination of 270 MW.
The turbine has been offered for 1x300 MW Abhijeet
Infra, Visakhapatnam.
In the transportation sector, catering to RDSO's
requirement for conversion of existing DC EMUs to 25
kV AC EMUs, BHEL has successfully type tested a
1200 kVA AC EMU transformer which matches the
dimensions of the conventional AC EMU transformer
with a 20% enhanced output.
To improve the reliability of Oil Rigs, BHEL has
developed an improved design of Casing Line Spooler
Unit with electrically operated braking system to
eliminate the failure of rope during reeving in or out
operation.
In its endeavour to develop environment friendly
technologies, BHEL has developed Copper Indium
Gallium di-Selenide (CIGS) nano-material for the
absorber layer of thin film solar cells. CIGS has better
performance under diffused light. 16-20% efficiency
has been achieved at lab level.
Some significant developments during the year:
As a reliable partner in ISRO's space program, BHEL
?A cost-effective high-pressure feed water heater for
achieved a landmark with the successful deployment
600 MW Power Plants, meeting international
of its Space Grade Solar Panels and Satellite Batteries
standards, has been successfully developed. It has
on the GSAT-10 and RISAT satellites. BHEL has
been installed at 2x600 MW North Chennai.
supplied 278 sq. mtrs. of Space Grade Solar Panels
?To meet stringent safety requirements of 500 MW Fast
and 42 Satellite Batteries, which are deployed on
Breeder Reactor based Nuclear Power Plant of
various satellites, now in orbit.
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1200 kV Transformer at PGCIL Test Station at Bina
Sustaining Leadership...
Engineering New Growth Avenues
11
?A state-of-the-art Test Facility for boiler feed booster ?To gauge and improve employee commitment of 6,000
pumps for power plants up to 1000 MW has been young engineering graduates that comprise almost
established at Hyderabad. It is used for testing the 50% of BHEL's executive population, an Employee
Engagement survey was conducted which identified pump for full load performance and NPSH (Net
areas for improvement in various HR processes. To fill Positive Suction Head) test with vacuum control. The
in these gaps, a series of training workshops on booster pump for 660 MW NTPC Barh-II unit was
'People Development' were conducted during the year tested at this facility.
for the reporting officers where they were given inputs
?A Drop Tube Furnace facility has been established at
on various aspects of leadership and subordinate
the Coal Research Centre, Tiruchy, for testing the
development.
combustion characteristics of Indian, imported as well
?As a part of welfare measures, BHEL has launched a
as blended coals. It will be used for accurate prediction
Pension Scheme for its retired employees effective
of boiler performance and efficient furnace design.
from the year 2007. More than 12,000 retired
employees have benefitted under the scheme till date.
BHEL's Information Technology is critical link of the
?Industrial Relations continued to remain cordial
organization's value chain, spearheading e-Governance,
contributing to production and productivity. Thrust on
focusing on capability building through effective & efficient
participative culture continued during the year through
IT enabled integrated system development, consolidation
the apex level bipartite forum, 'Joint Committee'.
& transformation, apart from ensuring business continuity
?A Joint Appeal on behalf of the Joint Committee for
& security, for enhancing value to stake holders & inclusive
BHEL was issued apprising all employees about the
growth. Some of the key initiatives underway include:
prevailing business environment and the intense
?Launching One BHEL- Enterprise Resource
competition faced by the company.
Planning (ERP) Solution on improved standardized
integrated processes across the organization.
?In-house development and progressive go-live of
Integrated Site Construction Management solution
for all the project sites
First PSU, to successfully implement IPV6 technology
for its publicly available servers.
?High Definition Video-Conferencing facility across 50
locations in BHEL and 84 nos. of virtual meeting
rooms, seamlessly connecting Business, Corporate,
Manufacturing Units and Sites, enabling speedy
decision making, without travel of employees.
?15 major locations of BHEL are ISO 27001:2005
compliant for Information Security Management
System (ISMS).
Work force & Talent Management
?BHEL is a committed Corporate Citizen fully alive to Making the organization younger - average age of
BHEL employees has come down to 40.7 years and the need of building synergy between business and
that of executives to 39 years. In line with market
Corporate Social Responsibility (CSR) as an integral
requirements, skill upgradation of BHEL employees is
part of its business strategy. As a part of this, BHEL
a continuous process. Developmental programmes
undert ook soci o-economi c and communi t y
for 4.3 mandays per employee were conducted during
development programmes during the year to promote
the year. In addition, 2,202 customer personnel were
education, improvement of living conditions, health
trained at various units.
and hygiene in villages and communities located in the
As a continued thrust on Leadership Development,
vicinity of its manufacturing plants and project sites
Development Centers were conducted for senior level
spread across the country.
executives to assess their competency levels based
BHEL launched a company-wide campaign titled
on BHEL's Leadership Competency framework.
'Vision to all - BHEL's Call' under which employees
Around 370 executives were covered in this
and their families were motivated to pledge their eyes
assessment and given feedback on their strengths
and areas for development. for donation. So far, around 52,000 pledges have been
Leveraging Information Technology
Human Resource Accomplishments
Corporate Social Responsibility
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800 kV Polymer composite insulator - under manufacturing
at EPD Bengaluru
?BHEL provided five meal distribution vehicles to the
Akshay Patra Foundation for distribution of mid-day
meals to poor children of government schools across
Kamrup District of Assam.
Continuing its tradition of winning prestigious national/
international awards, the organisation and its employees
won several awards during the year. Notable among these
included:
?'SCOPE Meritorious Award for Human Resource
Management'. The award was presented by the then
Hon'ble President of India, Smt. Pratibha Devisingh
Patil to CMD, BHEL.
?Two 'CII-ITC Sustainability Awards 2012' for Strong
Commitment towards sustainability through adoption
received. The company has also ventured into yet
of appropriate policy and procedures. The awards
another noble cause for organ donation.
were presented by the Hon'ble President of India,
BHEL has joined hands with the Govt. of India's Sh. Pranab Mukherjee to CMD, BHEL.
'Project Udaan' for enhancing the employability and
to integrate the youth of J&K with the mainstream of
the country. Under this project, 500 engineering
graduates and Diploma holders will be imparted
training in technical and behavioural area in the Units
of BHEL over a period of 5 years (2012-17). The first
batch is currently undergoing training.
BHEL has also joined hands with an NGO named
'Udayan Care' to support higher education of girl
children from BPL families. Under the programme
titled 'Udayan Shalini', 100 brilliant girl children, who
have passed class X, shall be financially supported to
pursue their education up to Post Graduation level
alongside developing/enhancing their personality and
employability.
As part of social commitment, 6,139 Apprentices were
BHEL was conferred the maximum number of 4
trained in the company. In addition, 8,475
'ICWAI National Awards for Excellence in Cost
students/trai nees from vari ous professi onal
Management', among public and private sector
institutions underwent vocational training.
companies for 2011. BHEL was awarded the
recognition for the seventh successive year.
Indian Chamber of Commerce 'PSE Excellence
Award' in the R&D, Technology & Innovation category.
5 'National Safety Award' to BHEL's Tiruchy unit and
EPD, Bengaluru for outstanding achievements in
terms of longest accident free period and lowest
accident frequency rate at their works.
'SKOCH Digital Inclusion 2012' Gold award Trophy
in the PSU category for developing and implementing
'Drawing and Document Management System'.
Gold Award under the National Awards for e-
Governance 2012-13 for Innovative use of ICT by
PSUs for Customers' Benefits.
'Golden Peacock Award for Sustainability 2012' by
the Institute of Directors (IOD).
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Accolades
Sustaining Leadership...
Engineering New Growth Avenues
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Shri M.F. Farooqui, Secretary (HI) launching training
initiative under Udaan
Shri Atul Saraya, Director (Power) BHEL handing over
the keys for Mobile Medical Unit (MMU) Vans to Helpage India
CMD BHEL receiving 'CII-ITC Sustainability Award'
from the Hon'ble President of India
?'ELCINA-EFY Award for Business Excellence - 'CNBC TV18 Best CFO Award 2013' to Director
2011-12'. (Finance), BHEL.
- IPE 'Finance Leadership Award' to Director ?'Golden Peacock National Training Award 2012'.
(Finance), BHEL.
?'National Energy Conservation Award 2012' for
- 'HR Leadership Award' to Director (HR), BHEL excellence in energy conservation and management.
- 'CFO 100 Roll of Honour 2013 in Corporate ?Other awards include 'Dainik Bhaskar India Pride
Governance/Financial Control' to Director Gold Award 2012' for excellence in Central and State
(Finance), BHEL. Public Sector Enterprises in the category of Heavy
industries; 'Fastest Growing Maharatna' award from
- 'Bureaucracy Today PSU Director of the Year
the Dalal Street Investment Journal, Best PSU Award
Award ' to Director ( Power), BHEL.
in the Electrical & Electronics category from Dun &
Bradstreet and 'BT-STAR PSU Excellence Award
2012' for Excellence in Innovation from Bureaucracy
?In a bid to steer the company through the period 2012-
Today.
17 with the objective of achieving revenue growth from
multiple streams, focus is in place to expand our ?'Enertia Award 2011' under the category Technology
offerings in the power sector by building EPC & Innovation for Conventional Energy (Thermal,
capability, consolidating Spares and Services Nuclear, etc.).
business, and expanding industry businesses in the
?For its outstanding export performance, BHEL has
areas of Photo Voltaics, Ultra High voltage
won the Engineering Export Promotion Council
transmission, and transportation.
(EEPC)'s Top Export Award for the twenty third year
?The company continues to sharpen its focus on '6- in succession.
Point' priority areas for action viz. Capability
Continuing its winning streak in the CII Exim Award
Enhancement, Accelerated Project Execution,
Scheme for Business Excellence as per the globally
Product Cost Compet i t i veness & Qual i t y,
recognised model of European Foundation for Quality
Diversification, Engineering & Technology and People
Management, two units of BHEL namely HPEP
Development aligned with its Strategic Plan initiatives
Hyderabad and EDN won t he
to sustain its leadership in its areas of operations.
'Commendation for Significant Achievements in
Our efforts to make our supply chain agile and to TQM'.
accelerate project execution, sustained focus on
?Quality Circles from 3 BHEL units won '3 Star Gold
Vendor Base Expansion, Scaling up procurement
Awards' and 1 unit won '2 Star Silver Award' at the
t hr ough t echnol ogy i ni t i at i ves, Advanced
International Convention for Quality Control
Manufacturing Action, Global Sourcing and
Circle 2012 (ICQCC:2012) held in Kuala Lumpur,
deployment of high capacity tools and plants for Malaysia.
project execution are underway.
7 employees won Prime Minister's 'Shram Awards'
including 1 'Shram Bhushan', 1 'Shram Shree' and 5 BHEL is positioning itself to remain a major contributor
'Shram Devi'.
in Power Sector by enhancing the scope of offer for
main plant packages on EPC basis by including Civil
?13 employees won 3 'Vishwakarma Rashtriya
works, Electricals, CHP & AHP and water systems.
Puraskars'.
Forays are being made for securing orders for
?PSSR, BHEL secured 'First place' for Effective Cost
standalone products based on state of the Art
Management under Public Service Sector (Large)
technology like FGD for Coal with high sulphur
category.
content, CHP/AHP, desalination plants etc.
?The following awards were conferred in individual
Developing lower rating sets with supercritical
category:
parameters providing alternatives to Utilities to take
- 'BT-STAR Best PSU Man of the Year Award
advantage of this eco-friendly technology even in
2012' under Maharatna/ Navratna category to
lower rating sets is underway.
CMD, BHEL.
As a part of structure-driven strategic initiative to
- 'NITIE Distinguished Alumnus Award 2012' to
expand offerings in Renovation and Modernisation of
CMD, BHEL.
Power Plants, R&M systems group (RMSG) has been
- Enertia 'Power Man of the Year Award' to CMD, BHEL.
created to support R&M business.
- Top Rankers 'Entrepreneurial Path Breaker
?BHEL is increasing its scope of offer in Nuclear field
Award 2013' to CMD, BHEL.
with products beyond conventional island.
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Planning for the Future
A Maharatna Company
14
BHEL's performance presented here is the result of dedication, team effort and commitment of
the 49,000 strong workforce of the company and the confidence reposed by its stakeholders.
We are especially grateful to the Ministry of Heavy Industry & Public Enterprises, Government
of India for their unstinting support. I thank all our stakeholders, our friends from the media
and my colleagues on the Board for enabling BHEL to grow from strength to strength.
?To meet the requirement of bulk power transmission for thermal power plants. With steam parameters of
BHEL is addressing the requirements by development
310 bar and 710C/ 720C, coal consumption and CO
2
of innovation led products in the areas of Ultra High
emissions will be lower by about 11% compared to a
Voltage transmission (eg. 1200 KV), UHVDC, Flexible
supercritical power plant.
AC Transmission products (SVCs, STATCOM etc.),
BHEL has initiated a major programme for Knowledge
WAMPACS including PMUs/PDCs etc.
Based Engineering (KBE) and design automation in all
?The company's collaborative initiatives to address the
its products. This is expected to substantially reduce
growing demand potential in Railway Transportation
the engineering cycle time and eliminate errors.
including Metro & Suburban Railways include:
In a bid to address the aspirations of the company to
o Collaborative R&D for development of state of the
art IGBT based propulsion systems in Electric and become a preeminent supplier of Industrial Boiler,
Diesel Electric Locos, AC EMUs.
Nuclear Steam Generator & supplier of equipment for
process Industries, merger of BHPV, a 100%
o Strategic tie-ups with a global player for Metro
business. subsidiary of BHEL, is underway.
o Initiative with Indian Railways for setting up a In a bid to make headway in new product areas like
greenfield Mainline Electrical Multiple Unit
Low tension (LT) Electrical motors, and Alternators for
(MEMU) Coach factory in Rajasthan.
Traction applications, facilities of BHEL-EML, a Joint
?Considering the National Action Plan on Climate venture of BHEL and Kerala Govt., are being
Change targeting 15% of electricity generation from
leveraged.
renewables by 2020, BHEL is looking towards
Skill deficit has emerged as one of the key bottlenecks
expanding its capacity to manufacture photo voltaic
in growth of 'Indian Industry and infrastructure sector'.
modules & cells. The company aims to actualise this
BHEL as responsible corporate citizen and a key
initiative backed by a supportive regulatory frame
player in power sector has adopted multi-pronged
work by way of incentives & subsidies, duty
structures, etc. strategy to reduce this deficit by adoption of ITIs and
extensive training of welders and fitters of customers
BHEL, in partnership with Indira Gandhi Centre for
and sub-contractors at its WRI Tiruchy and other
Atomic Energy (IGCAR) and NTPC, is developing
training centres.
Advanced Ultra Supercritical (Adv-USC) technology
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Sustaining Leadership...
Engineering New Growth Avenues
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Bharat Heavy Electricals Limited
Registered Office : BHEL House, Siri Fort,
New Delhi - 110049, India.
website : www.bhel.com
Issued by
Corporate Communication, BHEL
Jeevan Tara Building, 5, Sansad Marg, New Delhi - 110001, India.
Ph. :23365669, 23347335, Fax : 23342769, E-mail: rajivb@bhel.in
Note: Company results for 2012-13 are provisional, subject to audit
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