Subdued industrial growth impacts BHEL-PSSR profit margin

By Our Special Correspondent

CHENNAI, APRIL 8. The Power Sector Southern Region (PSSR) of Bharat Heavy Electricals (BHEL) has recorded a fall in turnover and pre-tax profits during 2000-01, compared to the previous year, according to provisional estimates.

PSSR, which caters to the power plant installation and servicing needs of electricity boards and public and private sector undertakings in the States of Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, Orissa and the Union territory of Pondicherry, recorded a turnover of Rs. 317 crores during the year, against Rs. 330 crores in the previous year.

The profit before tax was at Rs. 41 crores against Rs. 68 crores. Orders secured during the year totalled Rs. 110 crores, bringing the total orders on hand by the end of the year to Rs. 700 crores.

The results could be considered satisfactory, considering the ``subdued industrial growth and resource crunch, and the failure of some projects in the power sector to take off'', said Mr A. N. Jagadeeswaran, Executive Director, BHEL.

Addressing a press conference on Friday, Mr. Jagadeeswaran said that during the year, PSSR commissioned six sets and added 435 MW of power capacity to the southern grid, taking the total installed capacity of the region to 26,400 MW. BHEL PSSR's share in this was 16,800 MW.

At the Kovilkalappal (Thiruvarur) combined cycle plant in Tamil Nadu, it installed the country's first ``advanced class Frame 6- FA gas turbine'' for the Tamilnadu Electricity Board. The services division of PSSR overhauled 26 utility and industrial sets, equivalent to 4,895 MW capacity. Two 110 MW units of the TNEB at Ennore had been commissioned after renovation works.

The National Aluminium Company (Nalco) in Orissa, remained one of PSSR's most valued customers, having ordered eight successive 120 MW capacity plants on BHEL since the inception of Nalco. For the Karnataka Power Corporation, PSSR was installing the seventh successive 210 MW unit.

PSSR would be adding about 4,000 MW to the southern grid in the coming three years. This would include two mega projects - the JBIC-funded 1,000 MW project at Simhadri in Andhra Pradesh, and the 2,000 MW project at Talcher in Orissa - both for the National Thermal Power Corporation.

Other projects under execution included a 210 MW unit at Raichur in Karnataka for KPCL and a 95 MW gas-based combined cycle plant at Perungulam for the TNEB.

Recently, PSSR had started a customer service centre. It planned to open an exclusive interactive web page where customers could seek online solutions. It proposed to go in for ISO 14000 certification during 2001-02, the Executive Director said.

Even if 50 per cent of the projected addition of one lakh MW in the next decade materialised, PSSR would be able to sustain its volumes and market shares, he added.

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Section  : Business
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