Earnings roundup: BHEL

BHEL reported Q2 earnings of INR 615.77 crores, compared to INR 419.66 crores for Q2 07. Sales were up at INR 5,342.63 crore from Rs 3,965.36 crore. BHEL’s total outstanding order book stood at Rs 1.05 lakh currently, 85% of which came from the state and government. Margins were under pressure due to rising material costs and dollar appreciation.

NTPC to form JV with NPCIL for nuke foray

NTPC Board has approved a proposal to form a 49-51 JV with NPCIL to focus on civilian nuclear energy. The JV will initially set up a 2,000 MW nuclear power plant. NPCIL will hold a 51% majority stake in the venture. The partners plan to invest into the business with a 70:30 D-E ratio.

BHEL bags Rs1,474 cr order from NTPCThe

order is to set up 1,320 MW supercritical generator at Barh thermal power project in Patna. This is BHEL’s first commercial order with supercritical parameters through the International Competitive Bidding (ICB) route

Govt audit sees no issues with Chinese power equipments

The Mint has reported that a government audit of Chinese power equipments would not recommend a ban on it use by Indian power plants. Negative for BHEL.

Govt plans to hike initiatives for solar power

GoI plans to hike the 50MW cap for providing incentives to solar power plants to encourage more companies to tap India’s solar power potential. Under the present policy, the government provides an incentive of Rs 10 a unit for grid-connected solar thermal power plants and Rs 12 per unit of electricity generated from solar photo-voltaic cells. If the sops are restricted to a total generation of only 50 mw of solar capacity, power from units which do not get incentives will continue to be very expensive. However, setting up a solar power plant costs around Rs 16 crore per MW. We believe that Tata BP Solar, Moser Baer could benefit from this move.