India’s top producer of products for power projects is implementing an export contract received from a UAE company for two gas turbine generating units of 42 MW each.

The order, valued at Rs1,400 million ($28.8 million) came to Bharat Heavy Electricals Limited (Bhel) from Dubai-based International Energy Resources (IER) and was described by Bhel as its third breakthrough in the UAE. It came close on the heels of a similar order for two gas turbine generating units of 42 MW each from the same customer.
“The order reflects the customers’ confidence in Bhel’s capabilities and proven technological excellence. With this, Bhel has been able to secure orders for six gas turbine generating units from the UAE with a cumulative value of Rs4,500 million in a short span of just 11 months,” it said recently.
The latest units ordered by IER will be mounted on barges for mobile power plants and are planned to be used in different locations. “With the rapidly increasing need of power plants on a fast-track basis, independent power plant (IPP) developers are developing such merchant power plants that require short gestation and offer mobility,” Bhel observed in a statement
The Middle East is one of Bhel’s key export regions, where it has so far set up 14 power projects, apart from substations and supply of a host of equipment for the power and oil and gas sectors. This repeat order for power-generating equipment from the UAE will further consolidate Bhel’s position in the Middle East region - one of the fastest growing markets for power generating equipment globally.
Bhel has established its footprints on all the six continents of the world spanning 70 countries and its technical competence has earned worldwide acclaim. The company is taking major strides to become a major global player by enhancing its presence in international markets. It has identified overseas business as one of its thrust areas as part of its ‘Strategic Plan 2012’ and is targeting a six-fold increase in its physical exports by 2012.
The company’s globalisation strategy has been very successful, Bhel winning export orders from 26 countries in fiscal 2007-08. With a physical export order inflow of Rs23,110 million, the year marked significant steps towards globalisation with successful forays in new markets and new product areas.
The trend is continuing in the current year also and Bhel has already achieved major successes with a series of orders for power projects from Syria, Vietnam and Rwanda, besides the UAE.
Further stimulation in the growth of Bhel’s international business will be achieved through consolidation in existing markets and widening the export base through expansion of its existing basket of products and services as well as by entering new markets, with EPC business being the key driver of its ambitious growth plans.
Bhel has improved its chances of gaining contracts locally and abroad by joining hands with NTPC Ltd, the largest power utility in India, earlier this year. The 50-50 joint venture company will be called NTPC-BHEL Power Projects Pvt Ltd.
The main objective of the joint venture is to carry out EPC contracts for power plants and other infrastructure projects as well as manufacture and supply equipment in India and abroad.
Bhel has already expanded its capacity to 10,000 MW per year and is currently implementing the second phase of capacity augmentation to 15,000 MW. The new joint venture will further enhance the domestic capability for power plant capacity addition.