BHEL to foray into Metro Rail Coaches development biz

State-run BHEL will foray into development of metro rail coaches and is also exploring the possibility of manufacturing lithium-ion batteries in India. BHEL order book jumped 74 per cent to Rs 40,932 crore last fiscal

NEW DELHI: State-run BHEL will foray into development of metro rail coaches and is also exploring the possibility of manufacturing lithium-ion batteries in India along with four foreign firms, Union Minister Anant Geete said today.

The company said to have entered into a technology collaboration agreement with Japan’s Kawasaki Heavy Industries Ltd for the manufacture of stainless steel coaches and bogies for Metro Rail systems.

Addressing a press conference here, the minister said the second phase of the FAME India scheme will be rolled out post September when the pilot phase ends. He said a provision of around Rs 9,300 crore has been proposed as budget for implementation of FAME II, including Rs 1,000 crore for charging infrastructure.

He said a collaboration model is being discussed between BHEL and four foreign firms entailing a joint venture or a consortium, whereby 20 per cent equity will be owned by BHEL and 80 per cent will be theirs.

He shared that BHEL has earned a profit of over Rs 1,500 crore and has secured work orders worth Rs 1.18 lakh crore. The minister said that as there is less scope now in the thermal power sector, efforts were being made for BHEL’s entry into the development of coaches.

“The construction of metro has gathered pace in several cities across the country and BHEL is entering this sector. We have also directed BHEL to make efforts towards manufacturing lithium ion batteries in India,” Geete said.

According to him, FAME II to be rolled out after September this year will primarily focus on utilising electric vehicles for public transport in cities.

Replying to a query, the minister said the Delhi government did not participate in the tendering process for allotment of electric buses under FAME I, after the Centre floated an Expression of Interest inviting proposals in this regard. He said Mumbai is being given 80 electric buses under FAME I.

The department of heavy industries had in December last year sanctioned Rs 440 crore to 11 states for procurement of electric buses, electric taxis and e-autos as a pilot project under FAME India scheme for public transportation.

“We are making efforts towards production of lithium ion batteries in India. At present we are importing them from China which has a monopoly over it, we only assemble the batteries here. The discussions are in primary stage,” Geete said.

According to him, the innovators of lithium ion batteries are interested in making the batteries in India. Besides, the minister said the surplus land of sick PSUs under closure is not being sold and a decision on whether to utilise this land for Pradhan Mantri Awas Yojana is yet to be taken.

Under FAME India scheme, 22 Original Equipment Manufacturers with 80 models are registered for availing demand incentive. Till 31 March 2018, the government has given financial support (demand incentive) to about 1,86,431 electric/hybrid vehicles amounting to Rs 256.93 crore.

The minister informed that the department has sanctioned nearly 500 electric buses across nine major cities with an expected cash outgo of approx. Rs 280 crore, which will be a game changer in the public transport sector.

BHEL order book jumped 74 per cent to Rs 40,932 crore last fiscal

BHEL registered a jump of 74 per cent in its order book for the financial year ended March 2018 to Rs 40,932 crore as compared to Rs 23,489 crore in the previous financial year (2016-17).

The state-owned company ended the year with a total order book of over Rs 1,18,000 crore. The orders include projects worth Rs 33,342 crore in the power segment and Rs 7,590 crore in the industry and overseas segments.

All the orders for new thermal units were placed on Engineering, Procurement and Construction (EPC) basis.

“Focus on the increased localisation of supercritical technology, higher technology depth, and design optimization enabled the company to enhance its competitiveness and strengthen its leadership in the power plant and associated equipment segment of the Indian utility market,” the company in a statement said.

Major orders won in the power sector include 2,400 Megawatt (Mw) Patratu Supercritical Thermal Power Plant (STPP); 1,320 Mw Udangudi STPP from Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO); 660 Mw Panki STPP from Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd (UPRVUNL) and 660 Mw Bhusawal STPP from Maharashtra State Power Generation Co. Ltd.

In the nuclear power segment, BHEL secured an order for supply of four Steam Generator (SG) package for 1,400 Mw Gorakhpur Haryana Anu Vidyut Pariyojana (GHAVP) Units through Domestic Competitive Bidding (DCB).

The company also said its thrust on enlarging non-coal business has resulted in an upsurge with order inflows from the industry sector like transportation, defence, aerospace and water business.

In the Industry segment, significant orders were won for a wide variety of products and systems in captive power, oil & gas, transportation, defence & aerospace, renewable energy, water business, power transmission & distribution and various other Industrial segments.

BHEL also said major orders have been received in the water business segment with a foray into lake purification under the Smart City segment with an order from Raipur Smart City Limited and the first ever order in the Municipal segment from Raipur Development Authority for construction of six decentralised sewage treatment plants.

Significant orders have also been secured in the renewable segment including the first ever orders from Gujarat and Himachal Pradesh, largest ever order for supply of solar photovoltaic (SPV) modules from EESL and rooftop SPV orders from Telangana and Sports Authority of Andhra Pradesh, besides the highest rating SPV order for 75 MW SPV power project from GIPCL.

In the transportation segment, the company bagged orders for thirty 3-phase IGBT-based WAG-9H Electric Locomotives from the Railway Board after a gap of over one decade.

In the defence and aerospace segment, orders were secured for 76/62 mm Super Rapid Gun Mount (SRGM). Prestigious orders have also been received for 24 sets of pressure vessel parts from LPSC – ISRO and heat exchanger for LCA Tejas Programme from HAL.

As part of its diversification strategy, BHEL also entered into a Technology Transfer Agreement with Indian Space Research Organisation (ISRO) for the manufacture of space-grade Lithium-ion cells of various capacities utilising the technology developed by ISRO at its Vikram Sarabhai Space Centre (VSSC). This transfer of technology will enable BHEL to manufacture Lithium-ion cells, in-house, for ISRO and other applications.