BHEL bags its largest order worth Rs 18,000 crore in Telangana
Power generation machinery maker BHEL has bagged its largest order amounting to Rs 17,950 crore from Telangana State Power Generation Corp (TSGENCO) to set up a 4,000 MW plant at Yadadri.
“BHEL has achieved a new landmark by securing the single largest order in its history for setting up a 4,000 MW (5×800 MW) supercritical thermal power project from TSGENCO,” BHEL said in a statement.
The project valued at Rs 17,950 crore is one of the highest orders ever placed in the capital goods sector in India, the statement added.
“TSGENCO has entrusted BHEL with this order for setting up the 5×800 MW thermal power plant, on engineering, procurement and construction (EPC) basis, at Damaracherla in Nalgonda District of Telangana, named as Yadadri Thermal Power Project,” it said.
In December 2014, TSGENCO had placed an order with BHEL for setting up Telangana’s first Supercritical Thermal Power Plant of 800 MW rating, also on EPC basis, at Kothagudem followed by an order for the 4×270 MW Bhadradari TPS at Manuguru in Khammam district in March this year.
The statement further said, BHEL has been a long standing partner in the development of the erstwhile combined state of Andhra Pradesh with 78 per cent of the coal-based power stations having been commissioned by the company…
In 2014-15, these plants operated at a high Plant Load Factor (PLF) of 83.5 per cent against the national average of 65.5 per cent.
Earlier this year, TSGENCO has entered into an MoU with BHEL for construction of new thermal power plants totalling to 6,000 MW in the state.
BHEL said that all these power plants are expected to commence generation on fast-track basis to meet the state’s increasing demand for power, with power being identified as a crucial factor for the development OF THE STATE ..
Coal India pit-head stocks swell ahead of peak demand
Coal India has mined enough coal to be able to meet the needs of power plants for the next 40 days, coal secretary Anil Swarup said, a comfortable stocks position for a country used to summer blackouts and large imports of the fuel.
On top of the state-run company’s pit-head stocks of about 40 million tonnes, India’s 100 main thermal plants have 20 days of coal on hand ahead of the June-September monsoon season, when power demand peaks and coal output drops due to flooded mines.
Around this time last year, the plants had just 11 days of stocks, prompting some experts to say electricity generation may not be growing as fast as it should in the country where one in four people still goes without power.
Power generation fell 1% in April, after growing by 8.4% in the fiscal year that ended in March — the fastest rate in 20 years.
But demand is estimated to have jumped sharply in the past few weeks due to a searing heatwave that has killed 2,500 people, mainly in southern India. Swarup said Coal India was ready to raise fuel supplies.
“Coal production is increasing substantially and that would help bring down imports quite substantially, which will be reflected in the coming few months,” Swarup said, adding Coal India’s April-May output grew by 12% from the same period of last year to 82.6 million tonnes.
Swarup gave no forecast of coal import levels but said some firms may continue to buy from overseas clients based on long-term contracts.
Online commodities market operator mjunction, however, forecast India’s imports this June-September will be around the level of 80.1 million tonnes bought in the year-ago period.
“But the recent depreciation in the rupee versus the US dollar, and less-than-encouraging demand for cement and steel, might have its impact on power demand and in turn on coal demand, including imported coal,” mjunction CEO and managing director Viresh Oberoi said in an email.
India’s total coal imports rose 12% to 20.8 million tonnes in May, according to provisional data from mjunction.
Though India’s coal output is rising, transport facilities have not improved as fast. Swarup said the number of wagons at Coal India’s disposal rose 10% in April-May.
India Cements reports a net profit of Rs36.6 crore in Q4
India Cements Ltd reported a net profit for the fiscal fourth quarter, compared with a loss a year ago, as it benefited from a rise in the price of the building material and earned more for every tonne it sold.
The Chennai-based company posted a net profit of Rs.36.6 crore in the quarter ended 31 March; in the year-ago period, it had a loss of Rs.157 crore.
The net profit fell short of analyst’s expectations. A poll of 21 analysts by Bloomberg had estimated that the Chennai-based company would report a net profit of Rs.41crore.
The cement maker’s revenue fell 7.2%, to Rs.1,043 crore from Rs.1,124.6 crore.
Cement prices have improved, boosting earnings before interest, taxes, depreciation and amortization (Ebitda), said N. Srinivasan, vice-chairman and managing director. India Cements’ Ebitda margin, a key indicator of operating profitability, jumped to 19% from 10.27% a year ago.
India Cements benefited from higher price realization, said Shrenik Gujarathi, a research analyst tracking the cement industry at Angel Broking Pvt. Ltd, although revenue declined due to weak demand in southern India. Lower-than-expected power, fuel and freight costs improved its operating margin.
The company’s price realization improved to Rs.3,880 per tonne of cement from Rs.3,060 a tonne.
“We are seeing signs of recovery in Andhra Pradesh and Telangana as the government has proposed a requirement of 2 million tonne of cement for housing and irrigation projects,” he said.
This is apart from the cement requirements for building a new capital for Andhra Pradesh, which was bifurcated a year ago when Telangana was granted full statehood. Currently, Andhra Pradesh and Telangana consume about 1.3 million tonnes a month. India Cements has four factories in the two states.
This post was written by Atlantic Admin