According to sources at the ministry of heavy industries & public enterprises, the administrative ministry for Bhel, the company expects to post a profit of Rs 325 crore for 2001-02. This is about 30 per cent lower than Rs 482 crore, the expected profit for this fiscal.

In fact, the expected profit for this fiscal is more than the budgetary estimate of Rs 453 crore. In 1999-2000, profit was Rs 599 crore, up from Rs 545 crore in 1998-99.

Expecting the intensification of competition in the future, Bhel would concentrate on the modernisation programme as also on schemes for existing and new products in the next fiscal. Another area of emphasis would be science and technology schemes.

Sources said that the company is capable of generating internal resources for all its programmes and would not seek any budgetary support from the government. The company would spend Rs 231 crore in 2001-02, up from Rs 205 crore in the current fiscal. Bhel has planned major schemes like advanced class gas turbines, indegenisation of GT rotors, frame 9E bed-II, new generation automation platform and Max-XL telecom facility. The company intends to spend Rs 119 crore on these schemes in 2001-02. At present, it is studying the market and finalising the investment details.

The company also plans to implement nine modernisation schemes, including technological upgradation of steam turbines, generator, pumps, heat exchangers, energy meters.

Bhel, which was established for catering to the power generation and distribution equipment of the country, is a major supplier of various equipment, systems and services not only in the power sector but also other industries and Railways. It has 14 manufacturing divisions and eight service centres.

Bhel has tow joint ventures, one with Siemens of Germany and the other with General Electric of the US. The JVs are in the areas of power plant improvement for fossil fuel power plants and repair and servicing of gas turbines.

The company's production stood at Rs 6,471 crore in 1997-98, going up to Rs Rs 6,795 crore in 1998-99. In the last fiscal, however, production decreased to Rs 6,634 crore. For 2000-01, the anticipated production is Rs 6,800 crore. For the next fiscal, the target is Rs 7,200 crore.