Aiming to protect its profitability, Bharat Heavy Electricals (BHEL), is planning to focus on providing total engineering solutions for power plants due to decline in new power projects as a result of fuel availability concerns.
“Given the current power sector scenario where not many projects are coming up mainly due to limited availability of fuel, we plan to focus on providing complete engineering solutions to our customers,” BHEL Executive director (Tiruchirappalli unit) AV Krishnan told reporters here.
The equipment manufacturer had in 2001 inked a pact with Engineers India (EIL) to cooperate in identified areas of business having synergy of operations and EPC (engineering, procurement and construction) services.
“We had entered into a pact with EIL to provide engineering solutions as the power sector was not so lucrative then. But when the sector started looking attractive, we decided to focus on the core BTG (boiler, turbine and generator) business. However, given the current scenario, we need an insurance, which we expect to get from EPC services,” he said.
Currently, the EPC segment contributes to nearly 30 percent of BHEL’s turnover.
BHEL, which is mainly involved in manufacturing boilers, turbines and generators, is also planning to develop balance—of—plant (BoP) materials.