BHEL achieves record project commissioning in H1 of FY16
of FY16 was comparable to what was added in the whole of FY15. In addition to the domestic utility sets commissioned or synchronized, 125 mw of overseas projects and 330 mw of captive power plants were also commissioned by BHEL during this period.
The good performance of BHEL with respect to project commissioning actually reflects an extraordinarily high order inflow in the period FY08 to FY11. In this period, the average order inflow from the power sector stood at a staggering ₹ 44,321 crore. Considering an average gestation period of 4-5 years for power projects, one can expect that the quantum of project commissioning would be higher in the next 3-4 years as well. It must also be mentioned in the past two years or so, the pace of implementation of power projects had slowed down considerably owing to policy issues like absence of coal linkages, delays in securing environmental clearance, etc.
When the high order inflow of the period FY08 to FY11 gets commissioned, there will be a marked slowdown in the quantum of projects commissioned by BHEL. This is because BHEL’s average order inflow in the power sector dropped drastically to ₹ 21,212 crore in the period FY12 to FY15.
Overview of BHEL’s manufacturing facility at Bhopal, Madhya Pradesh