Bhel to set up Telangana's first thermal power plant for Rs 3,810 cr

Bhel to set up Telangana's first thermal power

 plant for Rs 3,810 cr

State-owned Bhel has bagged a Rs 3,810 crore contract fromTelangana for setting up the newly formed state's first thermal power project.

"Valued at Rs 3,810 crore, the order is for setting up the 800 MW supercritical thermal power plant on EPC (engineering, procurement & construction) basis at Kothagudem inKhammam District of Telangana," Bhel said in a statement.

The order has been placed on the company by the Telangana State Power Generation Corporation Limited (TSGENCO).

The project is to be commissioned in 36 months on fast-track basis with both Bhel and TSGENCO setting up teams to expedite clearances and execution of the project.

TSGENCO has entered into an MoU with Bhel for construction of new thermal power plants totalling to 6,000 MW in the state in the next three years to meet the increasing demand for power, the statement said.

Bhel's scope of work in the project includes design, engineering, manufacture, supply, construction, erection, testing and commissioning of the 800 MW supercritical set on EPC basis.

The key equipment for the contract will be manufactured at Bhel's Trichy, Hyderabad, Haridwar, Bhopal, Ranipet, Bangalore and Jhansi plants. The company's power sector western region is responsible for civil works and erection, commissioning of the equipment.

Bharat Forge acquires France-based MGL

Acquisition largely focused on further consolidating BFL position in Oil & Gas space

announced that its German Subsidiary CDP Bharat Forge GmbH, has acquired 100 per cent equity shares of Mecanique Generale Langroise (MGL) for Euro 11.8 million (around Rs 90 crore).

This acquisition is largely focused on further consolidating BFL position in the Oil & Gas

space by enhancing service offerings and geographical reach, said the company. This also brings BFL closer to its customers and increases the value addition provided to them. "This is first among many opportunities we are looking at addressing in North America, North Sea area & Middle East" said the company.

MGL primarily caters to premium global oil & gas customers, all of whom are already customers of BFL.

Baba N Kalyani, Chairman and Managing director of Bharat Forge, said "The acquisition of MGL is in line with our strategy of moving up the value chain in the industrial business. This acquisition enhances BFL's ability to provide turnkey solution and simultaneously strengthens the product offering in the Oil & Gas sector."

MGL based in Saint Goesmes, France is technology oriented company focused on precision machining and other high value added processes like cladding for critical application in the Oil & Gas industry. MGL supplies turnkey components for drilling application like Blow out Preventers (BoP), Surface & sub-sea well heads in addition to components for power sector.

For Bharat Forge this is the fifth acquisition. The earlier acquisitions done in the period of 2004 to 2006-three in the Europe and one in the US-was primarily done in the automotive segment. These acquisitions have not only allowed the company to penetrate deeper into the global markets but also made it one of the largest forging companies globally.

For instance, in November 2003, BFL acquired Germany based Carl Dan Peddinghus GmbH & Co. KG (CDP)-then the largest forging company in Germany--making it the world's second largest forging company. The other acquisitions include Germany's CDP Aluminium Technik GmbH & Co. KG and Sweden based Imatra Kilsta AB in Europe. In 2005 it also acquired US-based Federal Forge from a bankruptcy court. BFL had also entered into a JV with China FAW Corporation in 2006. However, earlier this year it offloaded its entire stake (51.85 per cent), ending its eight-years JV.

About 60 percent of the company's revenue comes from automative sector and rest from other business segments such as energy, transport, constructing and mining.

While automative business declined in India last year, there was a recovery and automative and oil and gas business in Europe and North America.