|BHEL CMD BP Rao|
PUBLIC sector electrical behemoth Bharat Heavy Electricals Limited (BHEL) is all set to make its foray into international arena with two thermal power plants.
The plants are to be built at a cost of Rs 3,000 crore in Russia.
A formal agreement to this effect is likely to be...signed during Russian President Vladmir Putin's visit to India next month.
Putin will be in India for the annual summit-level meeting with Prime Minister Narendra Modi.
Officials of energy ministries of both the countries have been in talks for striking a deal on setting up the power projects.
The issue of BHEL entering Russia for the thermal power plants is on the agenda of talks between external affairs minister Sushma Swaraj and the deputy prime minister of Russia Dmitry Rogozin, at the 20th India-Russia Inter-Governmental Commission Meeting in New Delhi.
It was proposed that BHEL takes up the construction of two 240-MW units of a power plant in Ulan-Ude, the capital of the Russian internal republic of Buryatia, as part of settling a debt India owes to Russia.
A media report quoting a senior official of BHEL confirmed that talks were on.
The report says the Russian side is actively considering BHEL’s proposal as the company has said it would raise finances for the projects using mechanisms under the trade and economic cooperation agreement between the two governments.
The total investment in the project is likely to be around $600 million, which will be shared equally by both sides.
While BHEL would bear 50 percent of the project cost.
After the two governments approve plans, BHEL in partnership with state-owned entity of Buryatian would take up the entire construction of the project on engineering, procurement and construction (EPC) basis and hand it over to Buryatian government for running later.
This would be the first instance of an Indian company tapping the debt repayment fund that has been created to clear off almost $2 billion of dues that India owes to Russia.
BHEL is the largest manufacturer of the power generation equipment in the country and has been a major partner in the country’s vision to achieve self-reliance in energy.
With a share of 57 percent in the total installed capacity in the country, BHEL contributes 62 percent of the total power generated in the country which is testimony to the superlative performance of BHEL's equipment.
The Maharatna PSU has, over the years, established its references in 76 countries across all the six continents of the world.
These references encompass almost the entire range of BHEL products and services, covering thermal, hydro and gas-based turnkey power projects, substation projects and rehabilitation projects, besides a wide variety of products like; transformers, compressors, valves and oil field equipment, electrostatic precipitators, photovoltaic equipment, insulators, heat exchangers, switchgear, castings and forgings, etc.
Some of the major successes achieved by BHEL have been in gas-based power projects in Oman, Libya, Malaysia, UAE, Saudi Arabia, Iraq, Bangladesh, Sri Lanka, China, Kazakhstan, Belarus, Yemen; thermal power projects in Cyprus, Malta, Libya, Egypt, Indonesia, Thailand, Malaysia, Sudan, Syria, Ethiopia, Senegal, New Caledonia, Ukraine; hydro power plants in New Zealand, Malaysia, Azerbaijan, Bhutan, Nepal, Taiwan, Tajikistan, Vietnam, Rwanda, Thailand, Afghanistan, Democratic Republic of Congo, Burundi; and substation projects & equipment in various countries.
Execution of these overseas projects has also provided BHEL the experience of working with world renowned consulting organizations and inspection agencies, said the website of the PSU.The company has been successful in meeting demanding requirements of international markets, in terms of complexity of work as well as technological, quality and other requirements viz. HSE requirements, financing packages and associated O&M services, to name a few. BHEL has proved its capability to undertake projects on fast-track basis. BHEL has also established its versatility to successfully meet the other varying needs of various sectors, be it captive power, utility power generation or for the oil sector. Besides undertaking turnkey projects on its own, BHEL also possesses the requisite flexibility to interface and complement other international companies for large projects, and has also exhibited adaptability by manufacturing and supplying intermediate products.