The Hindu Business Line : BHEL increases R&D spend to Rs 238 cr

Hyderabad April 10 The Corporate R&D of BHEL is fully geared to meet the technology challenges from the growing potential business opportunities in ultra mega power projects and nuclear power plants.

The Hyderabad-based Corporate R&D of the engineering and power major BHEL has increased its research & development spend to Rs 238 crore during fiscal 2006-07, up from Rs 152 crore last year.

At the current level, the R&D spend is about 1.3 per cent of the overall turnover of the BHEL. As per the Strategic Plan 2007-12 prepared by the BHEL, it should reach 2 per cent, said Mr S.K. Goyal, Group General Manager.

By 2012, it is estimated that the R&D expenditure would cross the Rs 1,000-crore mark, with the projected turnover of the entire BHEL put at $10 billion. "The Corporate R&D is on course to absorb the funds and also to deliver," he told newspersons today.

Turnover rises

Explaining the highlights of the fiscal 2006-07, Mr Goyal said the turnover from the in-house developed products/services also registered a 165 per cent growth at Rs 2,510 crore compared to last fiscal's Rs 1,064 crore.

Technology collaboration with Siemens and Alstom for turbine and boilers provides BHEL expertise to indigenously fabricate these key equipment for 500 MW power plants as well as the super critical power plants envisaged by the Union Power Ministry, he said.

"We are in joint venture with the NTPC for these larger power plants," Mr Goyal added.

During the year, the Centre of Excellence for Surface Engineering with an investment of Rs 8.40 crore was fully functional. A Centre of Excellence on GIS (Gas Insulated Substations) was in the offing. A Composite Insulator Facility at the Ceramic Technology Institute, Bangalore, has also been established, he said.