Mumbai: Bharat Heavy Electricals Ltd (BHEL), the state-owned power equipment major, is ramping up manufacturing capacity to 10,000 MW levels, at an investment of over Rs 1,600 crore.

"The manufacturing capacity of 10,000 MW is intended to meet the present indications of the likely power capacity addition target in the 11th Plan (2007-2012) of over 62,000 MW," BHEL said in a statement. The capacity addition may even surpass the projected 10,000 MW levels, depending on the requirements of the country's power sector, it added.

BHEL said most of the Rs 1,600-crore investment would go towards modernisation of plant and equipment and expansion of capacity at its facilities, adding that the enhanced capacity would become available by 2007.

The 10th Plan (2002-2007) is expected to add nearly 34,000 MW of fresh generating capacity in the country, of which the company's share of business would be about 19,500 MW, the statement said.

The focus, BHEL said, is on adding product and production facilities and on construction tools and equipment for erection and commissioning services at customer project sites. The current expansion plan is expected to add to work centre capacities.

BHEL said it has taken necessary steps for upgrading existing technologies and for introduction of new ones. It has already tied up new technology for thermal power equipment with super-critical parameters for the next higher rating 800 MW sets and above.

Introduction of higher rating hydro turbine generator sets and advanced class gas turbines have been planned to cater to the upcoming market requirements. Besides, the company is ready and equipped to be a part of the emerging opportunities in nuclear power generation, the company said.

BHEL is the largest engineering and manufacturing enterprise of its kind in India, and one of the leading international companies in the power field. It offers over 180 products and provides systems and services to meet the needs of core sectors like power generation and transmission, industry, transportation, non-conventional energy sources, oil and gas exploration and telecommunication. With 14 manufacturing divisions, a widespread regional services network and project sites all over India and abroad and with an export presence in more than 50 countries, BHEL is truly an Indian MNC.

In 2005-06 BHEL, Bhopal unit alone has recorded a turnover of Rs 1,825 crore which is not only19 per cent higher than the previous year but the highest ever since its inception. The profit before tax was also a new time high of Rs 222crore. The company has fixed a turnover target for fiscal 2006-07 at Rs 2,330 crore.

Bhel has large accumulated reserves and surplus in addition to its leveraging capacity to raise resources from the market and can fully meet the resource requirements on its own, the company said.