State-run Bharat Heavy Electricals Ltd (BHEL) will go ahead with its investment plan of Rs 20,000 crore (which includes individual ventures as well as tie-ups) in the next four years, despite the current slowdown. Of the Rs 20,000 crore, BHEL will invest as much as Rs 10,000 crore for expanding its manufacturing capacity to 20,000 mw per annum from the present level of 10,000 mw. The balance will be through joint venture (JV) projects, announced BHEL chairman and managing director Ravi Kumar.
Kumar told FE that the slowdown has not impacted BHEL?s ongoing capex, largely because of its sound balance sheet. BHEL?s JVs include the NTPC-BHEL company for engineering, procurement, construction (EPC) and balance of plants (BoP), BHEL-GE for high speed rail coaches and BHEL-PowerGrid Corporation JV for transmission sector. Kumar said that BHEL will soon enter into a JV with the UK-based Sheffield for LP turbine generator rotars and nuclear forging.
As far as the NTPC-BHEL JV is concerned, it has proposed to establish a manufacturing capacity of 5,000 mw per annum by 2014-15, with an investment of Rs 6,000 crore. Initially, the JV will focus on EPC projects and balance of plants. The present share-holding of BHEL and NTPC (50% each) will be diluted to 25% each and 50% will be offered to banks, financial institutions and financial services companies.