BHEL to diversify into oil sector
By A Business Correspondent
The Hyderabad unit of Bharat Heavy Electricals Ltd plans to diversify into biogas-based small turbines and refurbishment and maintenance of oil rigs and equipment for the oil industry. According to A.N. Jagadeeswaran, Executive Director of the company, "The outlook for the power sector is positive and about 100,000 mw of power is to be added by 2012. This gives us good potential for growth in the coming years. However, diversification into the oil sector will keep us to achieve our growth targets even if the power sector fails to meet the capacity addition targets."
The company has entered into a MoU with ONGC Ltd for the upgradation and refurbishment of 52 drilling rigs, 35 workover rigs and 25 new workover rigs. The volume of the business is estimated to be around Rs 1,800 crore of which Rs 230 crore order has already been received.
The company plans to bid for NTPC's 660-mw Super Critical Thermal Power Plant Phase II in Chhattisgarh.
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