In order to meet the uincrease in demand from the new power sector projects, public sector engineering major Bharat Heavy Electricals Limited says it will invest $2.5 billion (over Rs10,000 crore) in the next four years to enhance its capacity.

According to BHEL CMD K Ravi Kumar the heavy engineering giant will invest Rs 5,000 crore in the first phase till December 2009 to raise its capacity to make power equipment capable of generating 15,000 MW.

Kumar said the BHEL board has also approved a similar investment to further boost capacity to 20,000 MW worth of generating equipment by 2012."

The investment is in line with the order book of the company, which has crossed the 100,000 MW mark and is still growing.

On complaints of delays by power companies, Kumar said, as most of the projects for which deliveries had been delayed, was  because of changes in the parameters, which required a complete redesigning of the project leading to some delays.

BHEL had earmarked Rs 10,000 crore its overseas expansion and had formed a separate unit for the same to look for acquisitions on their own but the company did not take off.

They now feel the need to appoint global consultants to advise them on this issue.

BHEL has identified overseas business as one of its thrust areas as part of its 'Strategic Plan 2012' and is targeting a six-fold increase in its physical exports by 2012.

BHEL says it has established its footprint in 70 countries spread across all continents and plans to use its EPC business as the driver for future growth.