January 30, 2008 -- Power equipment manufacturer Bharat Heavy Electricals Ltd (BHEL) (BSE:500103) on Tuesday said it will invest Rs 7.36 billion (US$186.9 million) to increase the capacity of its manufacturing plant at Trichy in Tamil Nadu by 2009.

BHEL would upgrade the production capacity of boilers by over four times in the unit. It has already invested Rs 1.90 billion on the boiler shop in Tamil Nadu.

"The company is augmenting its manufacturing capacity to 15,000 MW per annum by 2009. As part of this, BHEL is upgrading its boiler manufacturing facility at its Trichy plant," the company said in a statement.

With the completion of this capacity augmentation programme, BHEL's production capacity for manufacturing thermal and nuclear boilers would go up to 4,81,000 million tons from a capacity of 1,08,000 million tons prior to commencement of the expansion programme, it added.

The scheme envisages installation of manufacturing facilities for supercritical boilers, material handling, storage and shipping facilities.

The new scheme will help the company to enhance its capability to build higher rating boilers and Once-through Super Critical (OTSC) Technology of 800 MW and 1,000 MW, improve presence in overseas markets and enhance quality process modernisation and productivity, it said.

The company would also invest Rs 520 million for making steam generators for 700 MW Nuclear Power Stations and unique equipment for defence. Besides, an advanced centre for manufacturing excellence would be set up at BHEL's Welding Research Institute in Trichy at an investment of around Rs 190 million.

The company had earlier said it would upgrade blade shop at its Haridwar plant at an investment of Rs 2.20 billion. It has already invested Rs 1.80 billion in the blade shop.

Source: Asia Pulse