BHEL secures two Hydro R&M contracts worth Rs 430 crore

Heavy electrical equipment provider Bharat Heavy Electrical Ltd (BHEL) on Monday secured two renovation & modernisation (R&M) contracts of Hydro Electric Plants (HEPs).

BHEL against the stiff competition, won worth around Rs 430 crore, for the R&M 6x60 MW Balimela HEP of Odisha Hydro Power Corp (OHPC) and the 3x60 MW Bairasiul HEP of National Hydro Power Corp (NHPC), it said.

Both the R&M contracts will support BHEL in restoration of output capacity, improvement in efficiency and reduction in auxiliary power consumption, and also lead to better plant availability.

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Major equipment for these contracts will be manufactured and supplied by BHEL's plants at Bhopal, Jhansi and Bengaluru.

These two R&M contracts have been in operation for over 35 years. Also the life expectancy of these projects are normally estimated to be around those periods, which is expected to be beneficial for BHEL.

It said in statement,"In a present scenario of the resource constraint in India, the R&M and uprating of existing HEPs is considered to be the best option, as this are cost effective and requires much lesser time than setting up of greenfield hydro power projects."

Shares of BHEL on BSE, was trading at Rs 137.40 up by 2.04% at 2.34 pm.