Question : EXPANSION OF BHEL



(a) whether the Government proposes to expand Bharat Heavy Electrical Limited to meet increasing demand of equipments for new power projects;

(b) if so, the details of the scheme prepared therefor;

(c) the time by which the aforesaid scheme will be implemented;

(d) the expenditure likely to be incurred thereon; and

(e) the steps taken by the Government so far to meet the growing demand of power equipments?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI ARUN YADAV)

(a)to(c): Yes, Madam. In order to contribute to the demand for power generating equipment during the 11th Plan period and beyond, Bharat Heavy Electricals Limited (BHEL) had augmented its manufacturing capacity for Power Plant Equipment from 6000 MW to 10,000 MW per annum by December, 2007. This manufacturing capacity is being further enhanced to 15000 MW p.a. by end December, 2009. This will further go upto 20000 MW per annum by December,2011.

(d): The estimated cost for the above capacity expansion programme of BHEL is approximately Rs.5803 crore.

(e): Some steps that Government of India has taken to meet the growing demand for power generation equipments include:

# formation of joint ventures and entering into agreements by BHEL with undertakings which have necessary capabilities for manufacture of power plant equipment and Balance of Plants;

# encouraging existing players to augment and build up capacities;

# standardization of Unit ratings, Layouts and Specifications for Thermal Plants which will enable batch production of equipments; and

# sensitizing the industry to the needs of increasing manufacturing capacity and widening the vendor base for Main Plant equipment and Balance of Plants like Coal Handling Plant, Ash Handling Plants, Water treatment plant etc. by organizing international conclave & regional workshops.