JSW Energy will invest up to 40 billion rupees ($623 million) to build electric cars, batteries...
The company had reported a standalone net profit of Rs 77.77 crore for the quarter ended June 30, 2016, BHEL said in a BSE filing on Thursday.
Overall income rose to Rs 6,194.21 crore for the quarter ended June, from Rs 6,070.21 crore in the year-ago period.
The company has outstanding order book position of Rs 1,01,380 crore as on June 30, 2017.
The company said that maintaining the positive trend of 2016-17, it has reported a growth in profitability.
For the standalone first quarter of FY 2017-18, it reported a turnover of Rs 5,607 crore, almost similar to the corresponding quarter's figure, it added.
At a meeting held today, its board of directors has recommended the issue of bonus shares in the ratio of 1 bonus share of Rs 2 against 2 existing equity shares of Rs 2, subject to approval of shareholders.
"Maintaining the growth momentum has been made possible by a slew of strategic initiatives and cost optimisation measures put in place by the management," Atul Sobti, Chairman and Managing Director, BHEL, told PTI.
He further said that the company is enhancing its focus on diversifying in the non-thermal power segment and other new areas, while maintaining its leadership status in the power sector.
As part of this, he said, the focus is on creating new verticals within the company to capitalize on the massive infrastructure spending by the government, with a special focus on Indian Railways, defence and other industrial products to drive the next wave of growth.
BHEL has also been focusing on sustainable energy development by offering EPC solutions in solar and an environment-friendly supercritical technology in the thermal sector, it added.
While the country is taking measures to take renewable energy capacity to 175 GW by 2022, the Economic Survey published by the finance ministry on Friday noted that the transition is likely to adversely affect conventional energy-generation assets. With renewable energy addition, a part of such plants would be left idle or running at low utilisation levels, the survey said.
Industry estimates appraise the current total capacity of stressed and stalled thermal power-generation projects to be between 25,000 MW–40, 000 MW. Investments in these projects are estimated to be around Rs 1,50,000 crore to Rs 2,40,000 crore. “In our estimates, these stranded assets are estimated as the lost revenues due to the sub-optimal utilisation of coal based power generation assets as a result of shift to renewables,” said the survey.
Acknowledging that stranding of power-generation assets can have implications for the banking system, the survey noted that the social cost of renewables was around three times that of coal at Rs 11 per unit in FY17. The NPA ratio pertaining to electricity generation was around 5.9% from total advances (outstanding) of Rs 4,73,815 crore. The total advances to coal sector was Rs 5,732 crores with a NPA ratio of 19.8%.
“The low renewable energy tariffs discovered recently have been partly a result of government subsidies/tax holidays and other incentives,” the survey said. Solar and wind tariffs plummeting to Rs 2.44 per unit and Rs 3.46 per unit, respectively, in recent reverse auctions had fuelled foreboding among a certain section of the coal-based thermal power industry.
Budget estimates for FY18 indicate an allocation of Rs 420 crore towards subsidies for solar and wind power. However, the survey said that subsidies to solar power has declined to Rs 15 crore in FY18.
A report released by power minister Piyush Goyal in June had found that adding 175 GW of renewable energy would lead to the plant load factor (PLF) of coal-based power plants dropping by 13 percentage points to 50%, with 65,000 MW plants running at PLFs below 30%. To normalise PLFs of coal-based plants in such a situation, 205 generation units, with a capacity of 46,000 MW and investments of more than Rs 2,30,000 crore, would have to be retired. “There is a contradiction in terms of coal-based plant growth, renewable energy integration and grid balance,” Goyal had said while releasing the report.
Private thermal power plants have been running at utilisation levels which makes it difficult for them to service debts, mainly due to tepid growth in power demand. Average PLF for thermal power plants across the country was 62.5% in the first quarter of FY18. PLF for private sector plants was 57.3%.
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