BHEL which plans to set up a marketing joint venture with General Electric (GE) with who it has a memorandum of understanding for refurbishment of locomotives. For the planned 50:50 joint venture the equity size is yet to be worked out.

In the field of advanced technology, BHEL has already joined hands with two German companies, including Babcock Borsig Power for super critical and ultra-super critical boilers and Broaithmule for fabric filter.

BHEL has evinced keen interest in metro rail projects, too. The company would like to focus on supply of rolling stocks, electrical signalling equipment and ticketing equipment. BEHL is an established player in the fields of rolling stocks and electrical equipment. In other areas like ticketing equipment, the company would prefer tie-up with a leading international company.

BHEL has already invited bids for some proposals. Elaborating on the extent of partnership, BHEL chairman KG Ramachandran said: "At the initial stage we plan to have a joint working group relationship with our foreign partner. We will bid for projects together and both will also be involved in supply of equipment."

These joint working groups will initially address specific projects. However, if needed these can be converted into joint ventures at a later date, sources said. Equipment supply and technology for coal washery is another area where BHEL would like to venture into. "We have already initiated talks with a leading South African company in this regard," Ramachandran said.

Coal washery business has good prospects, but there is an ambivalence about it due to the quality of Indian coal at large, he said. It is argued that washing Indian coal may not be beneficial as there is has an high ash content. There is a suggestion for the use of coal shelling technology instead coal washing. "We have to wait until the coal companies make up their mind," he said.

The list of other areas where BHEL wants to enter into includes material handling at ports, power electronics and information technology for power projects. "These are some of the growth areas which would be looked at with renewed focus. However, in these fields the long-term strategy of the company is yet to be firmed up. That is why the company plans to take on step at a time," said Ramachandran.

"Some of these businesses do not require technology transfer and working jointly with a partner would enable the company to get acquainted with the new technology," he said.

for greater efficiencyAgreement for Technology transfer of super critical boiler is an excellent developement as it is not easy to get, though competitors of BHEL (both ABB and GE) have it. The cost is higher than the conventional boiler by 10 per cent but the incremental cost is recovered in 18 months. In India, the largest conventional coal fired station has a unit rating of 500mw. These units have been operating at sub critical parameters (pressure less than 200 bar) at turbine end with the exception of Trombay Unit VI. The direct impact of super critical boilers that it improves efficiency and is more eco-friendly.