Work apace at NTPC-BHEL plant in Andhra Pradesh

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Mr C.P. Singh
Mr C.P. Singh

M. Somasekhar

Hyderabad, Aug. 9

NTPC-BHEL Power Projects Ltd (NBPPL) has committed Rs 200 crore by end of March 31, 2011 to kick-start construction activity in the Rs 6,000-crore power equipment manufacturing facility at Mannavaram, near Tirupati in Chittoor district of Andhra Pradesh.

At least 150 professionals would be recruited by then; ground work has already begun at the 750-acre site allocated by the Andhra Pradesh Government, said Mr C.P. Singh, Chairman and Managing Director of the joint venture company floated by NTPC-BHEL combine.

Though the official foundation laying event by the Prime Minister, Dr Manmohan Singh, has been postponed, civil work, ordering of necessary equipment and finalising important aspects of the project are in full swing, Mr Singh told Business Line in an interview here.

The manufacturing unit has seen controversy over its location, setback after the death of former Chief Minister Y.S. Rajasekhara Reddy, and postponement of the visit of Prime Minister on two occasions, raising doubts in some quarters in the State.

Mr Singh said the project is on course to complete Phase-I by 2013, which will see manufacturing facility for Balance of Plant (coal handling and ash handling plants) ready. During fiscal 2011-12, massive investments would flow in and recruitment in big numbers would happen.

It will have a capacity of producing power generation equipment of 5,000 MW per year and provide direct employment to 6,000 and indirect employment to 25,000 when completed in 2015 with the main manufacturing of power plant equipment such as boilers, turbines and generators, he added.

Asked about the funding for the project, Mr Singh said NTPC and BHEL have agreed for a debt:equity ratio of 1:1 for raising Rs 6,000 crore. Both being cash-rich, funds will not be a problem, he said.

Orders for EPC work

Even as the joint venture is focused on implementing the project in Andhra Pradesh, it is also getting contracts from power utilities as an EPC contractor. “We have bagged Rs 450 crore orders already and are on course to end the current fiscal with an order book of Rs 7,000 crore worth of projects,” Mr Singh said.

At present, NBPPL is executing Balance of Plant packages, including civil and structural works for the 100 MW Namrup Power Station in Assam and 726 MW CCPP-Palatana of ONGC Tripura Power Corporation.

The joint venture will take up the execution of the 500 MW Singrauli unit on EPC basis.

It will also implement the 600 MW unit of the Andhra Pradesh Generation Corporation (APGenco) in Rayalseema region. The company's business plan target is to achieve a turnover of Rs 10,000 crore by 2015, when the AP plant is expected to be commissioned, Mr Singh added.

The company is building up expertise in project management engineering and also drawing on necessary skills from both NTPC and BHEL in executing projects. There is scope for going abroad for contracts in future. However, the huge demand for power equipment and urgent need for beefing up installed capacity within the country require more manufacturing facilities, he said.

Related Stories:
AP allots land for NTPC-BHEL gear venture at Rs 100/acre
NTPC-BHEL joint venture signs pact on financial targets

(This article was published in the Business Line print edition dated August 10, 2010)
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