BHEL eyes $2.5 billion orders in 4-6 weeks

Bharat Heavy Electricals Ltd, India's largest power equipment maker, expects to close orders worth about $2.5 billion in the next 4-6 weeks as firms step up investment in the power sector. The state-run company is counting on private power firms to boost its order book as delays in bids and rising competition slow orders from the government.

BHEL has orders on hand worth 1.3 trillion rupees ($26.6 billion). This includes 150 billion rupees signed this year, with the private sector contributing 90 percent. It hopes to get 550 billion rupees of orders in the current year to March 2010.

This could rise by 100 billion if it gets part of a bulk equipment contract from NTPC Ltd, the country's largest utility, expected to be awarded in January-March. The company is expanding its capacity to meet rising demand and is also looking to new areas as competition from domestic and foreign players increase.

BHEL, in which the government holds nearly 68 percent, hopes to expand its revenue by at least 25 percent in 2009-10 while net profit is expected to grow 30 percent. The company mainly makes turbines, boilers and generators and is expanding total annual capacity to 15,000 megawatt of equipment by March 2010 from 10,000 MW.