3rd April, 2012
Press
Conference address by
Shri B. Prasada Rao
Chairman
& Managing Director,
BHEL
on
the Company's Performance
Record Performance under difficult market conditions
-
Financial-Highest turnover and profit
-
XI Plan capacity addition- nearly double of that achieved
in X Plan period
-
Increased focus on Engineering and R&D- highest
R&D expenditure and highest patents/ copyrights filed
|
|
2010 – 11
|
2010-11*
|
2011 – 12
(Provisional)
|
|
% change
|
|
|
(A)
|
(B)
|
(C)
|
|
(C/B)
|
|
Turnover
(Rs. Crore)
|
43,337
|
41,299
|
49,301
|
 |
19.4
|
|
Profit
Before Tax (Rs. Crore)
|
9,006
|
8,487
|
10,001
|
 |
17.8
|
|
Net Profit
(Rs. Crore)
|
6,011
|
5,665
|
6,868
|
 |
21.2
|
|
Net worth
(Rs. Crore)
|
20,154
|
19,808
|
24,947
|
 |
25.9
|
|
Earnings
Per Share (Rs.)@
|
24.56
|
23.15
|
28.06
|
 |
21.2
|
|
R&D
Investment (Rs. Crore)
|
982
|
982
|
1162
|
|
18.3
|
Note: * Excluding onetime impact of change in policy related to
provisions for warranty obligations for earlier years
@ Calculated on post split on number of shares for 2010-11 on like to
like basis
Major Highlights
Technology & Innovation
Ø
Highest no. of 351 Patents/Copyrights filed in a
year – a patent a day
Ø R&D investment at Rs. 1162 Crore – 18% higher
than the previous year
Ø Established Four new Centres of Excellence,
taking the total tally to 13
Ø
BHEL’s space-grade
Solar Panels for high power applications successfully deployed in ISRO’s high power communication satellite GSAT-8, launched recently from French Guyana
Marketing Accomplishments
New Orders
Ø
Existing customers
repose confidence with new orders - 2x660 MW Supercritical sets from DB Power
(MP) Ltd., 2x660 MW Steam Generator order for Mauda supercritical thermal
project of NTPC and for new rating thermal set of 300 MW from Abhijeet Projects
Ltd.
Ø
Main plant equipment package for 2x600 MW Singareni
Thermal Power Project from Singareni Collieries Co Ltd.
Ø
Contract signed with PGCIL
for setting up the world’s first + 800 kV, 6,000 MW UHVDC multi-terminal
transmission system to supply hydro power across 1,700 kms. (North East to
Agra), with highest ever converter capacity, in consortium with ABB
Ø ONGC reposes confidence in BHEL by placing an
order for 6 nos. state-of-the-art AC Drilling Rigs
Ø Bagged single largest Raw Material Handling System
(RMHS) order worth Rs.1,395 Crore from NMDC
Ø Maiden entry into 765 kV substation segment with order for 765/400 kV substation at Raichur from PGCIL
Product Offerings
Ø Introduced new rating 300 MW sets, further enhancing our range of thermal
sets on offer in subcritical as well as supercritical range
Ø
First time in the country new rating 525 MW thermal sets commissioned
Ø
Achieved stabilization of CFBC boiler
technology under Indian conditions with India’s largest 250 MW CFBC boiler and
two 125 MW CFBC boilers
Ø
India’s first and highest rating indigenously
developed 1200 kV class Transformer successfully test charged to cater to 1200
kV UHVAC Transmission Systems
International Ventures
Ø Export orders from 21 countries
Ø Forayed into a new market – Ukraine
Ø Power & Transmission projects commissioned in Oman, Taiwan, Nepal
& Afghanistan
Ø Executing 24 nos. contracts in 19 countries across the world
Operational Excellence & Quality
Ø
9 Power Stations out of 12 and 10 Power Stations
out of 13 equipped with BHEL equipment were awarded with Govt. of India’s
National Awards for Meritorious Performance for the years 2009-10 & 2010-11
respectively, reinforcing the reliability and quality of BHEL equipment.
Ø
BHEL sets contributed 69% of the power generated in the country in FY 2011-12
Ø Consistent Operating Availability of 500 MW thermal sets at more than 90% for last five years
Strategic Initiatives
New Strategic Plan
Ø Crafted a new
Strategic Plan for the period 2012-17 to steer the company with a vision of
becoming a global engineering enterprise.
Ø Offerings in
Power Sector would be expanded by building EPC capability.
Ø Focus would
be on Transportation, Transmission, Defence, Renewables, Nuclear and Water
segments.
Focus on Renewables
Ø Sets new record in SPV business - 15 MWp of Solar Power Plants installed
across the country
Ø Two
eco-friendly Grid-Interactive Solar Power Plants of 5 MWp for IOCL & 3 MWp
for KPCL
Commissioning
Ø Highest ever
commissioning achieved by BHEL for Utilities totaling to 8,410 MW. This
includes 8,138 MW of capacity addition (29% higher than last year) and 272 MW
synchronized & awaiting clearance from utilities for capacity addition.
Ø
BHEL commissioned 13
sets of 500 MW during the year against previous high of 8 sets.
Accolades
Ø
‘SCOPE Meritorious Award
for R&D, Technology Development and Innovation’ was
presented to BHEL by the Hon’ble President of India, Smt. Pratibha Devisingh
Patil
Ø ‘MoU Excellence
Award 2009-10’ as the Top
Performing CPSE in ‘Industrial Sector’ was presented to BHEL by the Hon’ble Prime Minister
of India, Dr. Manmohan Singh
Ø Only PSU to be conferred the NDTV Profit Business Leadership Award for
the second year in succession
Ø
Awarded EEPC's Top Export Award for Project
Exports for the twenty second year in succession
Ø Ranked as the Best Engineering
company to work for in the Engineering & Automotive category by Business
Today magazine
Ø
Ranked the Ninth Most Innovative
Company in the world by ‘Forbes’, the renowned US business magazine
Performance Details
BHEL completed another successful year 2011-12,
in the
backdrop of subdued investment climate in the country, deferment of orders in
its business areas and demand contraction in the economy adversely affecting
the Engineering & Capital Goods Industry. The company withstood all these
pressures because of its inherent strength and strong fundamentals.
Financial Performance
·
BHEL notched up its
highest-ever turnover of Rs.49,301 Crore,
registering a growth of 19.4%
over the previous year. Profit Before Tax (PBT) surged 17.8% at Rs.10,001 Crore, during the year, compared to Rs.
8,487 Crore* in the year before.
· Net Profit
(PAT) rose 21.2 % at Rs.6,868 Crore against Rs. 5,665 Crore* in the previous
year. During the year highest ever interim equity dividend of 136% was paid for
2011-12, maintaining the track record of paying dividends uninterruptedly since
1976-77.
·
Earnings Per Share
(EPS)* stood at Rs.28.06 – an
increase of 21.2 % over that of 2010-11.
·
Net Asset Value
(NAV)* per share stood at Rs.101.9,
reflecting the intrinsic strength of the company.
·
Total export turnover (physical
+ deemed) touched rs. 22,014 Crore.
Note: * Excluding onetime impact of change in policy related to
provisions for warranty obligations for earlier years
Marketing Achievements
Orders Inflow
Despite stagnation
in the power sector and intense competitive pressure in domestic and overseas
markets, BHEL secured orders worth Rs.22,096
Crore, during the year. At the end of the year, cumulative orders in hand
for execution in 2012-13 and beyond, stand at about Rs.1,34,681 Crore.
·
From being one of the most rapidly growing sectors till last year, the
power sector in India has witnessed a sharp slowdown during 2011-12. Project
developers are facing numerous constraints which have affected on-going as well
as new projects due to factors like Coal allocation, Gas allocation,
Environmental clearance, Land acquisition, Financing, Legal issues, etc. As a
result, the bidding process of many projects was delayed and many projects for
which bids had been opened more than a year ago, could not be concluded.
·
In the Power
Sector business segment, BHEL continued to demonstrate its competitiveness
by bagging most of the Power Plant & associated equipment orders
placed during the year, in the country. Orders worth Rs. 13,937
Crore were secured during the year.
|
Significant orders received in the Power sector include:
v
Main plant equipment package
for 2x660 MW Singrauli Supercritical power project from DB Power (MP)
Ltd.
v
Main plant equipment package
for 2x600 MW Singareni Thermal Power Project from Singareni Collieries
Co Ltd.
v
2x660 MW Steam Generator order for Mauda supercritical
thermal project of NTPC against bulk tender
v
First ever order for new
rating thermal set of 300 MW rating
from Abhijeet Projects Ltd.
|
·
In its Industry Sector business segment,
BHEL secured orders worth Rs. 8782 Crore for a wide variety of
products and systems for application in Captive Power, Transportation,
Transmission, Oil & Gas, Renewable Energy and other Industrial Sectors,
thus strengthening its diversification efforts in non-Power business.
|
Significant orders received in the Industry Sector include:
v Continued Customer Confidence - 4 STGs (3x32 MW for Vilayat & 1x20 MW for Harihar) from
Grasim Pulp & Fibre Division; 2xFr6B GTGs from Reliance and 6th Fr6B GTG
from IOCL, Vadodara
v
First Fr6FA GTG-based Cogen
plant order from KRIBHCO against stiff competition
from Thermax, Siemens & Ansaldo. This is also BHEL’s first GTG
order with Chiller for enhanced power output.
v
Bagged Single largest Raw Material Handling System (RMHS) order worth Rs.1,395 Crore from NMDC for their 3 MTPA
Integrated Steel Plant being set up at Nagarnar, Chhattisgarh.
v
Bagged Single largest order for 85 sets 25 kV AC EMU (Conv.) from ICF, Chennai and for 870 sets
of Wheel and Axle assembly from the Railway Board.
v
Secured Major order for supply of 6 nos.
state-of-the-art AC Drilling Rigs from ONGC, received
after a gap of 18 years. Rigs with AC drives are the latest trend
worldwide, as rig operation becomes more efficient due to high power factor
of AC motors.
v
Record orders for motors from
CHP/AHP suppliers for 217 motors and for 15 nos. 980-6500 KW motors from
Manikgarh Cement. 9 new customers added in the industrial motors business,
which significantly enhanced business reach.
v
Secured orders for 765/400 kV substation at
Raichur, 400/220 kV Aurangabad substation & 400 kV Wardha substation
Extn. package from PGCIL, against stiff competition. The 765/400 kV
substation order has paved the way for BHEL's maiden entry into the 765 kV
substation segment.
v
Secured orders for 14 nos.
285 MVA, 400 KV generator transformers for KAPP and RAPP nuclear power plants
of NPCIL.
v
Secured orders for 28 nos. Power Transformers from PSTCL
of 100 MVA, 220/66 kV and 12 nos. 160 MVA, 220/ 66 kV, 19 nos. 160 MVA,
220/132 kVAuto Transformers and 32 nos. 132kV Transformers from MPPTCL.
v Breakthrough in NTPC
for supply of busducts through competitive route. BHEL secured orders for 7
sets of busducts for NTPC's 660 MW projects at Mauda, Solapur and Nabinagar.
|
·
In International Business, the year 2011-12
witnessed unforeseen turmoil in various parts of the globe impacting BHEL’s
international business prospects. The widespread financial instability in
Europe and political volatility in Middle East & North Africa (MENA) region
has caused delays in financial closure & project financing, resulting in
postponement of finalisation of new projects. This recent political and civil
unrest in the MENA region and increasing security concerns have adversely
affected business prospects in our traditional markets. In spite of such difficult
and uncertain trends, BHEL has made persistent efforts in maintaining its
volume of international business. Though certain large orders expected to be
finalised during the year were delayed, concerted efforts have helped us
maintain our footprints with orders from
21 countries across the world.
|
Significant orders received in International business include:
v Ukraine - Entry into new
market - BHEL
made its maiden entry into Ukraine by securing an order for a 27 MW Steam
Turbine Generator (STG) package from the Arcelor Mittal group. BHEL has
secured order for Steam Turbine from a European country after a gap of 15
years. This order has opened up new business opportunities in the CIS market.
v Single largest export order
for Transformers - BHEL
secured the single largest export order for transformers for Punatsangchhu-I
Hydroelectric Project, Bhutan.
v Letter of Intent received for 6x170 MW Punatsangchhu–II Hydroelectric
Project, Bhutan.
v Repeat order for Motors from
Kenya - Winning the confidence of existing customers, BHEL secured repeat
orders for Motors from Mombasa Cement Ltd., Kenya for supply of 2500 kW and 1400 kW Slip Ring
Induction Motors.
v
New product in existing market
– Wellheads from Georgia - For the first time, an order for Wellheads has been secured from the
CIS market. This is also the maiden export order for Wellheads from Georgia
and has been received from the Jindal Petroleum Operating Company. This will
enhance BHEL’s prospects in the CIS market for oilfield equipment.
v Footprints strengthened in 21 countries across the globe - Orders for other products
including revival of 15 MW STG from Indonesia, transformers from Iraq, motors
from Bangladesh, Yemen and Nigeria and soot blowers from UAE have been
secured.
v Continued focus on After Sales Services led to orders for Spares
& Services from different parts of the world including Australia, Bangladesh, Bhutan,
Georgia, Indonesia, Iraq, Kazakhstan, Malaysia, Malta, Oman, Saudi Arabia,
Sri Lanka, UAE, United States, Vietnam and Yemen.
|
STRATEGIC BUSINESS INITIATIVES
Strategic Alliances
Aimed at maximising
business through mutually beneficial strategic tie-ups, BHEL signed / formalized
the following alliances during the year:
·
BHEL’s Joint Venture Company with Karnataka Power
Corporation Ltd. (KPCL) - Raichur Power Corporation Ltd. achieved financial
closure for the 2x800 MW Yeramarus power plant in November, 2011. The equity
has been subscribed to the extent of 50% by KPCL, 26% by BHEL and 24% by IFCI. Debt
has been tied up with PFC and a consortium of commercial banks. The JVC has already
placed the order on BHEL for main plant equipment.
·
An MoU was signed with HMT (International) Ltd. for cooperation in enhancing overseas business.
·
An MoU has been signed
with PT. Mega Urip Pesona, Indonesia for setting up a 2x200 / 2x250MW coal
fired steam power plant in Indonesia.
·
An MoU has been signed with the Govt. of South
Sudan for setting up a 4x70 MW thermal power plant on EPC basis in South Sudan.
·
An MoU has been signed with
M/s. Welter Zahnrad, GmbH, Germany, for the supply of internals for Gear Boxes,
used in Pulverisers.
Capacity Augmentation & Asset Modernisation
·
BHEL made a capital
investment of Rs. 1068 Crore during 2011-12 towards augmentation of
manufacturing capacity and modernisation of facilities in manufacturing units
and at power project sites.
·
Focused attention was
given on rebuilding and retrofitting of existing facilities to enhance their
life, accuracy and productivity through an additional investment of Rs. 76
Crore.
·
In the XI Plan period (2007-12), BHEL has made a capital investment of Rs. 6246 Crore as
against Rs. 1,092 Crore in the X Plan- a six-fold increase. During this
period, BHEL has:
-
Enhanced its
capability to deliver power plant equipment from 6,000 MW to 20,000 MW per
annum
-
Established 3 new
plants viz. Centralised Stamping unit, Jagdishpur; New Fabrication Plant at
Jagdishpur and Power Plant Piping unit at Thirumayam
-
Augmented
manufacturing capacity for AC locos from 30 to 50 nos. per annum
-
Enhanced transformer
manufacturing capacity from 23,500 MVA to 45,000 MVA per annum
Focus on Renewables
·
BHEL has been contributing to the national effort
for developing and promoting renewable energy based products on a sustained
basis. During the year, the company set a new record in its Solar Photovoltaic
(PV) business, by commissioning 15 MWp
of Solar Power Plants in various parts of the country. This includes 5 MWp IOCL
Phalodi, 3 MWp KPCL Raichur, 2 MWp India Bulls Power Ltd Bareilly, 4MWp India
Bulls Power Ltd, Katol, and 1.18 MWp in Lakshadweep. These projects are based
on Crystalline Silicon Photovoltaic (cSi PV)
technology which is well proven and has the longest operational experience
across the world.
·
Under the aegis of the National Mission on Clean
Coal Technology, BHEL, in association with IGCAR, NTPC and other organizations,
is developing Advanced Ultra Supercritical Technology with MS/RH temperature of
700°C and MS pressure of 300 ata. Once operational, plants based on this
technology will operate at efficiency exceeding 45% under Indian ambient
conditions.
·
An MoU has been signed with IOCL and IIT-Rajasthan
for joint development work in the Concentrated Solar
Power (CSP) area. Products and systems developed under this joint effort
will be tested and demonstrated at the Solar Field being created at
IIT-Rajasthan’s upcoming campus at Jodhpur.
·
BHEL continued its commitment towards environment
conservation with the completion of several Environment Improvement Projects
(EIPs). These projects helped in enriching the environment, conservation of
precious resources like energy, water, fuel oil, coolant, lubricant, mitigating
environmental pollution. Major EIPs included plantation of trees in and around
units/sites, rainwater harvesting projects and energy & resource
conservation projects, utilization of non-conventional energy sources, noise
level reduction system, chemical storage & handling system, etc.
Operational Achievements
Project Commissioning
·
Significantly, thermal and hydro units with a cumulative capacity of
1,625 MW were commissioned at various power stations across the country in a span of just 24 hours.
·
During the XI Plan
period BHEL commissioned 25,385 MW of Utility sets against 13,613 MW achieved
in X Plan period.
·
The installed
capacity of BHEL supplied Utility sets went past the One Lakh MW mark totaling to 1,06,202 MW and BHEL maintained its lion’s
share in the country's total installed capacity of 1,80,413 MW.
·
Full load operations
of NTPC Simhadri Unit 4 achieved within 6 hrs of synchronization indicating BHEL’s
equipment reliability and commissioning prowess.
·
For THDC India
Ltd, 100% targeted capacity addition was achieved during the XI plan despite
flooding at Koteshwar power station of THDC.
·
BHEL has achieved 100%
commissioning in Private sector, for both thermal & hydro projects against
the 11th plan target.
·
India’s largest
250 MW CFBC boiler, set up at Neyveli for NLC, has achieved full-load operation
using lignite. After commissioning the same has been handed over to customer
for commercial operation.
·
In addition, two
125 MW CFBC boilers have been set up at Barsingsar for NLC which are fired by
Palana lignite characterized by high shrinking ash.
·
BHEL’s first 1xFr-9 FA Gas Turbine-based Combined Cycle Power Plant
(CCPP) of GSEGL commissioned at Hazira (351 MW)
Gujarat during the year followed by 2xFr-9 FA CCPP of PPCL at Pragati-III (750 MW- Module 1)
Delhi.
·
BHEL commissioned 13 sets of 500 MW during the year against previous high
of 8 sets.
·
490 MW National Capital Thermal Power Project Dadri Unit-5
of NTPC Ltd., supplied and commissioned by BHEL, was awarded with the
Government of India’s National Award for Early Completion.
·
BHEL has established a multi-modal logistics system for safe
transportation of sophisticated ODC consignments.
|
Major power
projects commissioned include:
|
|
|
v
2x525 MW Unit-1&2 for Maithon Power Ltd
v
2x500 MW Unit-1&2 for DVC Durgapur
v
1x500 MW for APGENCO Kothagudem
v
1x500 MW for KPCL Bellary-2
v
2x500 MW Unit 4&5 for MSPGCL Bhusawal
v
1x500 MW Unit-2 for APCPL Jhajjar
v
1x500 MW for MSPGCL Khaperkheda
v
1x500 MW Unit-1 for DVC Koderma-1
v
1x250 MW Unit-6 for WBPDCL Santaldih
v
1x250 MW Unit-8 for UPRVUNL Harduaganj
v
1x250 MW Unit-1 for NLC Neyveli TS-2 Expn
v
351 MW CCPP for GSEGL Hazira
v
1x250 MW STG-1 for PPCL Pragati
v
1x500 MW Unit-1 for NTECL Vallur
v
1x500 MW Unit-4 for NTPC Simhadri
v
2x100 MW Unit-3&4 Hydro set for THDC Koteshwar
v
1x37 MW for APGCL Lakwa
v
2x126 MW GTGs in Oman
|
v
1x63 MW Hydro set in Taiwan
v
2x5 MW Hydro sets in Nepal
v
153 MW CCPP for GGSR, Bhatinda
v
1x50 MW STG for Facor Power
v
1x48 MW STG for India Cements
v
1x33 MW STG for GNFC
v
1x28 MW STG for Siruguppa Sugars & Chemicals
v
1x25 MW STG for ACC Wadi
v
1x20 MW STG for Basai Steel
v
1x17.5 MW STG for Maruti Suzuki
v
1x80 MW STG Monnet Ispat
v
1x60 MW STG My Home Industries
v
1x20 MW STG CPCL Chennai
|
EQUIPMENT PERFORMANCE
·
Nearly 75% of the
country’s total generation of 612 Billion Units from Thermal Utility Sets was
contributed by BHEL supplied sets. Similarly 42% of country’s generation from
Hydro sets and 66% of country’s generation from Nuclear sets was contributed by
BHEL sets.
·
BHEL make 200-500 MW thermal sets, which form the
backbone of the country's thermal generating capacity, operated at a PLF and OA
of 79% and 89% respectively. Of these, 14 stations achieved PLF of over 90% (Budge-Budge, Dahanu,
Amarkantak, Lehra Mohabbat Bhatinda etc).
•
Consistent availability above 90% for last five
years for 500 MW thermal sets.
•
152 BHEL coal based sets achieved OA higher than
90%.
•
221 BHEL supplied coal based sets clocked
uninterrupted operation of more than 90 days during the year out of which, 47
sets ran twice continuously for more than 90 days and 14 sets continuously ran
for more than 200 days.
•
BHEL Nuclear sets registered an OA of 90.9% and
PLF of 76.1% in 2011-12 against OA of 82.7% and PLF of 63.2% in 2010-11.
•
10 Nuclear sets with BHEL equipment ran
continuously for more than 90 days during the year.
•
9 Power Stations
out of 12 and 10 power stations out of 13 equipped with BHEL equipment were awarded
with Govt. of India’s National Awards for Meritorious Performance for the years
2009-10 & 2010-11 respectively, reinforcing the reliability and quality of
BHEL equipment.
Customer focused
services
·
BHEL reinforced its commitment in providing prompt
and efficient service to its customers aimed at facilitating uninterrupted
power supply and keeping power plants in good running condition. During the
year, BHEL overhauled 140 thermal
utility/captive sets.
·
Responding to the customer's emergency call, BHEL
took up on war footing and completed the restoration of Unit-1 of Chukha Hydro Electric Project (HEP) in Bhutan in
just nineteen days. Replacement of critical components of Units 1&2 of Tala
HEP was also carried out to the satisfaction of the customer.
·
Rehabilitation of Devighat HEP, Nepal (3x5 MW)
completed successfully within 247 days against the planned schedule of around 270
days.
·
Despite challenging
conditions, BHEL successfully completed setting up of the 220/110 kV Kabul
Substation Project in Afghanistan. An appreciation letter has been received
from the customer.
·
Customer UJVN Ltd
appreciated the annual maintenance activity of Chilla Power House which was
achieved on time for first unit and before time for other two units resulting
in their successful full load operation.
·
BHEL developed &
commissioned Isolation Logic in Jojobera Units-1,2&3 preventing frequent
collapse of internal grid of Tata Steel in case of any disturbance in DVC grid.
Technology & Innovation
The R&D efforts of the company are aimed at
improving the performance and efficiency of existing products, and also
developing new products using state-of-the-art technologies and processes. Focus
is on the relevance to the needs of the country to remain contemporary both in
terms of technology & features vis-à-vis global benchmarks.
·
BHEL pursued aggressive
in-house efforts and encouraged innovation in line with the ‘Decade of Innovations
(2010-2020)’ declared by the Govt. of India. As a result, R&D investment of
the company has registered 18% growth over the last financial year at Rs. 1162 Crore.
A growth of 22% has
been recorded in turnover from in-house developed products and services that clocked
a turnover of Rs. 9512 Crore, which is around 19.3 % of the turnover of
the company.
·
BHEL also filed the
highest-ever patents and copyrights in a year, enhancing the
company’s intellectual capital to 1786 patents and copyrights filed, which are in productive use.
·
In order to
facilitate advanced R&D activities in focused areas with state-of-the-art
facilities and specialized manpower, BHEL has established 13 Centers of Excellence. These Centers have been focusing on
development of new products, processes, analytical tools for improvements in
design, enhancing efficiency and life cycle in existing products, meeting the
company's and national requirement of developing new products and systems for
both industrial and strategic applications. During the year, BHEL has
established four new Centres of Excellence, in the areas of:
-
Advance Fabrication
Technology
-
Coal Research Centre
-
Nano Technology
application
-
UHV lab for GIS
development
·
An MoU has been signed with Indian Institute of
Science (IISc), Bangalore, covering a broad area of joint research
opportunities to facilitate BHEL to engage in collaborative research. This aims
at accelerating the pace of development and demonstration of new products,
systems and concepts.
|
Some of the
significant developments during the year include:
v As part of its endeavour to
offer the most contemporary products & technologies to customers, BHEL
has successfully designed, manufactured and commissioned India's
highest voltage Power Transformer of 1200 kV 333
MVA rating at the 1200 kV National Experimental Substation of PGCIL. The
Single Phase Interconnecting Transformer has been developed and
manufactured with in-house engineering and manufacturing technology.
v First 400/220/33kV 500 MVA
Auto Transformer manufactured by BHEL for POWERGRID has been tested
successfully.
v The first 765 kV 80 MVAr
single phase Shunt Reactor developed with in-house
technology has been tested
successfully as per IEC standard.
v BHEL
has introduced new rating 300 MW
thermal sets, with an improvement of 3% in heat rate over the existing 270 MW rating, leading to more
efficient and environment-friendly power generation. BHEL has already won its first order for
this rating for Visakhapatnam TPP from the Abhijeet Group through competitive
bidding.
v BHEL has developed India’s
largest 15 MVA, 33/6.9 kV, 3 phase, 50 Hz, Natural Air cooled Dry Type Cast
Resin Transformer. The new transformer offers advantages over conventional
oil filled transformers in respect being free from the risk of fire and being
maintenance-free. The transformer will be used for supplying power to huge
dredgers employed for open cast coal mining for continuous extraction of coal
for Ultra Mega Super Thermal Power Project.
v For
the nation’s first Prototype Fast Breeder Reactor based power plant, new
systems have been engineered for the first time to cater to specific needs of
safe and reliable operation of the plant, such as OGDHR [Operation Grade
Decay Heat Removal System], SGTSDC [Steam Generator Tube Side Depressurisation
Circuit], etc. In-house capabilities have been utilised to complete
mechanical, electrical and C&I design for various regimes of operation
and to ensure reliable and safe operation of these critical subsystems.
v An indigenous design &
manufacturing capability has been established for Main steam stop valve for
660 MW supercritical power plant applications. A cost-effective, new design
variant of Swing Check Non return Valve has also been developed to take care
of sudden pressure surge during valve opening required for water storage down
comer lines of 660 MW Supercritical Boilers and economizer inlet line of 600 MW
Projects.
v Continually
striving to improve the economies of solar PV systems, BHEL has developed an optimized
printing process for solar cells for achieving higher aspect ratio (Grid line
height / Grid line width) resulting in an all-time high solar cell conversion
efficiency of 18% along with enhanced PV module output from 227 W to 240 W.
BHEL has also developed a new LASER based isolation technique adopted for
removal of junction at edges of crystalline silicon solar cells leading to
enhancement of yield to 99% and gain in efficiency.
v As a reliable partner in
ISRO’s space program, BHEL achieved a major landmark with the successful
deployment of its Space Grade Solar Panels on the GSAT-8 satellite. Launched from French Guyana, the satellite
is ISRO’s heaviest satellite, weighing in at about 3100 Kg at lift-off. The
four Solar Panels supplied by BHEL for
GSAT-8, have an area of over 5 sq. mtrs. each, totalling to around 21 sq.
mtrs. and comprise multi-junction Solar Cells in series and parallel
combinations, with a total power capacity of 4.5 kW. BHEL has supplied 51 Space Grade Solar Panels totalling to
221 sq. mtrs. in area for various satellites of ISRO, which are deployed on
INSAT 3A, INSAT 3E, GSAT 2, GSAT 3, GSAT 4, IRSP 5 and EDUSAT satellites, now
in orbit.
v In its efforts at automating
fabrication processes, BHEL has automated the welding process for ’Manufacture
of Bifurcate Components’ used in re-heater coils and low temperature super
heater coils (LTSH) of fossil boilers. The automated process has enhanced
productivity and lowered defect rate.
v With an endeavour to remain
contemporary in technology, BHEL has implemented state-of-the-art IEC61850
protocol on C&I platform to address compatibility at control panel as
well as Human Machine Interface sides that allows seamless integration of
various third party IED’s (Intelligent Electronic Device) in Hydro Power
Plants.
v
For the benefit of
its customers in terms of improved product life, a cost-effective new variety of
‘Ceramic Liners for Coal Nozzle Tips’ having better thermal shock resistance,
has been developed for the first time in India. These liners have enhanced
the life of nozzle tips and shall also be deployed in 660/ 800 MW
supercritical power plants.
|
Human Resource Accomplishments
Work force & Talent
Management
·
In line with
changing market requirements, the knowledge and skills of BHEL employees are
continuously upgraded. Developmental programmes for 15.10 mandays per employee
were conducted during the year. In addition, 1,916 customer personnel were
trained at various units.
·
Manpower is being ramped up in a commensurate and
timely manner and 4,771 persons have been recruited in 2011-12. With
this, BHEL has recruited
more than 20,000 people at various levels in the last five years.
·
In Talent Management, Competency Assessment
remained an area of focus during the year. For the senior leadership,
Development Centres were organized for assessment of leadership competencies
based on BHEL’s Leadership Competency Framework. Around 160 senior executives
at the level of GM and AGM were covered through this exercise. Based on the
assessment, competency gaps have been identified and Individual Development
Plans have been created to bridge the gaps. In addition, competency assessments
were carried out for around 900 junior and middle level executives using a
Psychometric tool, based on which areas for development have been identified. Going
forward, the assessment data will also be used for our Career and Succession
Planning processes.
·
To gauge and improve employee commitment, an
Employee Engagement survey was conducted which has thrown up areas for
improvement in various HR processes. Action Plans are being finalized to
address these areas.
·
Industrial Relations continued to
remain cordial contributing to production and productivity. Thrust on
participative culture continued during the year through the apex level bipartite forum, ‘Joint Committee’.
CORPORATE social responsibilitY
·
BHEL is a committed
Corporate Citizen fully alive to the need of building synergy between business
and Corporate Social Responsibility (CSR) as an integral part of its business
strategy. As part of this, during the year, BHEL undertook
socio-economic and community development programmes to promote education,
improvement of living conditions, health and hygiene in villages and
communities located in the vicinity of its manufacturing plants and project
sites spread across the country.
·
Reaching out to the
distressed victims in the earthquake-ravaged areas of Sikkim, BHEL has made a
humble contribution to help alleviate their suffering.
·
BHEL reiterated its
commitment to the United Nations’ Global
Compact Programme on CSR and continued to play a lead role in promoting the
set of core values enshrined in its ten principles
on human rights, labour standards, environment and anti-corruption. It intends
to advance these principles within its sphere of influence and has made it a
part of its strategy, culture and day-to-day operations and demonstrated
its commitment through regular pooling of communication of progress (COP) on
the United Nations Global Compact website and by organizing National
Conventions to disseminate the concepts of Global Compact.
·
As part of social commitment,
7,941 Act Apprentices were trained in the company. In addition, 8,419
students/trainees from various professional institutions underwent vocational
training.
ACCOLADES
Continuing
its tradition of winning prestigious national/ international awards, the
organisation and its employees won several awards during the year. Notable
among these included:
·
‘SCOPE Meritorious Award for R&D, Technology
Development and Innovation’. The award was presented
by the Hon’ble President of India, Smt. Pratibha Devisingh Patil to CMD,
BHEL.
·
‘MoU Excellence Award 2009-10’ as the Top Performing CPSE in ‘Industrial
Sector’. The award was presented by the Hon’ble Prime
Minister of India, Dr Manmohan Singh to CMD, BHEL.
·
BHEL became the only
PSU to be unanimously selected for the ‘NDTV
Profit Business Leadership Award’ for the second year in succession. The award for 2011 was conferred to
BHEL in the industry vertical of ‘Engineering’.
·
BHEL was conferred the maximum number of 3 ‘ICWAI
National Awards for Excellence in Cost Management’, among public and
private sector companies for 2010. BHEL was awarded the recognition for the sixth
successive year.
·
‘Essar Steel Infrastructure Excellence Award 2011’ was awarded
to BHEL by CNBC TV18.
·
3 'National
Safety Award' to BHEL’s Hyderabad and Trichy units for outstanding
achievements in terms of longest accident free period and lowest accident
frequency rate at their works.
·
Under the Rolta
Corporate Awards 2010 of Dun & Bradstreet, BHEL was selected as the
top Indian company under the
‘Engineering / Capital Goods’ sector.
·
The ‘Intellectual
Property Award 2011’ was conferred on BHEL by CII.
·
BHEL also won the ‘Golden Peacock Award for
Occupational Health & Safety 2011’ and the ‘Golden Peacock Award for
Innovation Management 2011’ in the Manufacturing Sector category.
·
BHEL was awarded the ‘EXIM Achievement Award’ in the Import Category by the
Tamil Chamber of Commerce.
·
Other awards include ‘Dainik
Bhaskar India Pride Gold Award 2011’ for excellence in Central and State Public Sector Enterprises in the category of
Heavy industries; ‘Gentle Giant’ award from the Dalal Street Investment
Journal and ‘Enertia Award 2011’
under the category Technology & Innovation for Conventional Energy
(Thermal, Nuclear, etc.)
For its
outstanding export performance, BHEL has won the Engineering Export Promotion
Council (EEPC)’s Top Export Award for the twenty second
year in succession.
·
BHEL
has been ranked the Ninth
Most Innovative Company in the world by the renowned US business magazine Forbes.
Significantly, BHEL is the only Indian engineering company on the list, and is
ranked much higher than similar multinational companies in the power equipment
field.
·
BHEL was recognised as the ‘Best
Engineering Company to Work For’ in the Engineering & Automotive
category by Business Today magazine.
·
Continuing its
winning streak in the CII Exim Award
Scheme for Business Excellence as per the globally recognised model of
European Foundation for Quality Management, three units of BHEL namely HPEP Hyderabad, EDN Bangalore and
Power Sector Eastern Region won the ‘Commendation for Significant Achievements
in TQM’. In addition, its BAP Ranipet Unit, was awarded ‘Commendation for
Strong Commitment to Excel’.
· 3 Quality Circles won Gold Medals for
their case studies at the International Quality Circle Conference (ICQCC –
2011) held in Yokohama, Japan.
·
8 Prime Minister’s
‘Shram Awards’ including 2 ‘Shram Bhushan’ and 5 'Vishwakarma Rashtriya Puraskars’.
· The following
awards in individual category conferred on CMD, BHEL:
-
‘SCOPE Excellence Award 2009-10’ in individual leadership category (Maharatna
& Navratna PSEs) by the
Hon’ble Prime Minister of India, Dr. Manmohan Singh
-
‘Eminent
Engineering Personality of India Award’ from the Institution of Engineers
(India) at the Indian Engineering Congress
-
‘Forbes India Leadership Award
2011’ in the ‘Best CEO Public Sector’ category
-
‘Sivananda Eminent Citizen Award- 2011’ of the Sanatana Dharma Charitable Trust by H.E. Sh. E.S.L. Narasimhan,
Hon'ble Governor of Andhra Pradesh.
-
‘9th
Wärtsilä Mantosh Sondhi Award’ by Mr. Björn Rosengren, President and CEO,
Wärtsilä Corporation for outstanding contribution to the energy sector in India.
LOOKING AHEAD
·
Strategic Plan 2012-17, crafted recently, attempts to steer the company with
a vision of becoming a global engineering enterprise. It comprises expanding
our offerings in the power sector by building EPC capability, focus on industry
businesses, expansion of spares & services and adoption of a collaborative
approach.
·
In spite of the current stagnation in Power Sector, we believe that the power
sector will continue to remain a major contributor to our top line with
transportation and transmission emerging as the next big business verticals. We
will continue to strengthen our presence in the Nuclear, Renewable and Water
segments.
·
We will continue to sustain our focus on innovation to develop strong
capabilities in product development and engineering. To uphold our reputation
for excellence in our core capability of ‘Engineering & Technology’, we
will continue to upgrade existing products and systems to contemporary levels
and develop new products through continuous in-house efforts as well as through
acquisition of new technologies.
·
In recent years, BHEL has expanded its manufacturing capacity. We are
taking various initiatives to streamline our manufacturing value chain for full
exploitation of a strong manufacturing base.
·
BHEL has recruited more than 20,000 highly talented and competent people
at all levels during last five years. We are in the process of reorienting our
Human Resource focus to develop not only each person’s competencies, but also
their performance and potential in alignment with our ongoing business
challenges. Leadership development, competency mapping, performance linked pay,
career planning and succession planning initiatives are in various stages of
implementation.
·
‘6-Point Agenda’ viz. Capability Enhancement, Accelerated Project
Execution, Product Cost Competitiveness & Quality, Diversification,
Engineering & Technology and People Development will continue to drive us for reaping an
execution premium to put us ahead of our peers.
·
Notwithstanding the uncertainties in the business environment and rising
intensity of competition, we aspire to reach a turnover level of US$20 billion
dollar by 2017.
BHEL’s
performance in the just concluded year was made possible by untiring efforts of
more than 49,000 members of its family and the confidence reposed by its
stakeholders. We are grateful to the Ministry of Heavy Industries & Public
Enterprises for their unstinted support and policy interventions. I thank all
our stakeholders, our friends from the media and my colleagues on the Board for
enabling BHEL to scale new heights.
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