BHEL Joins Hands with Abengoa to Develop Concentrated Solar Power Projects in India

Bharat Heavy Electricals Limited (BHEL), the largest engineering and manufacturing enterprise in India in the energy-related infrastructure sector and Abengoa, Spain, the European leader in solar and other energy-related projects, have joined hands to develop state-of-the-art Concentrated Solar Power projects in India.

To this effect, an agreement was signed in Seville, Spain, by Mr. B.P. Rao, CMD, BHEL and Mr. Santiago Seage, Chairman and CEO, Abengoa Solar. The agreement will enable both the organisations to leverage their capabilities in offering EPC solutions for Concentrated Solar Power (CSP) projects in India, as well as give them the opportunity to explore cooperation in energy projects in other parts of the world. The agreement is highly significant in the context of the Jawaharlal Nehru National Solar Mission recently launched by the Government of India, which aims at setting up 20,000 MW of solar power projects by 2022. The mission depicts the county’s commitment to the abatement of green house gas emission aimed at reducing global warming.

Through this agreement, BHEL and Abengoa are aiming at significantly contributing to the cause of reduction in global warming through the use of CSP technologies which harness the energy of the sun for power generation thereby reducing the requirement of fossil fuels which are the leading cause of emission of CO2 and other green house gases.

BHEL is the largest engineering enterprise of its kind in India and one of the foremost companies in the international power arena. While its core competence is in the power sector, it also caters to other core sectors like; Industry, Transportation, Transmission, Oil & Gas, Defence and Renewable Energy. Its diverse manufacturing base supported by contemporary and unique manufacturing facilities gives it a competitive edge. With a product portfolio of over 180 products, BHEL has its foot print in over 70 countries. In the area of renewable energy, BHEL already manufactures and supplies grid-connected solar photo-voltaic energy systems from its plant at Bangalore. The CSP systems would now be supplied on EPC basis through the new agreement with Abengoa.

Abengoa, Spain, is a leading global organization with innovative technologies serving the solar, bio-energy, environmental services and power generation sectors. The group has a major presence in Spain and other EU countries, USA, Latin America apart from Africa and Asia.

Source: Press Information Bureau English Releases

Government approves PFC follow on public offer

The government on Wednesday approved follow-on public (FPO) offer of the state-run lending agency Power Finance Corporation worth about Rs 5,732 crore.

The exact amount to be raised through the offer can be ascertained only after the Empowered Group of Ministers (EGOM) decides the offer price.

The shares of the company were trading at Rs 249.7 a price, down 2.44 per cent from previous close in the afternoon trade on Bombay Stock Exchange (BSE).

"The Cabinet Committee on Economic Affairs (CCEA) today approved the follow on public offer of the PFC," an official statement said here.

The company will also infuse 15 per cent fresh equity by issuing 17,21,65,005 shares of Rs 10, the statement added.

"The fresh equity would be 15 per cent of pre-issue existing paid up capital," it said.

Meanwhile, sources said the FPO is likely to hit the markets in the first quarter of next financial year.

The offer would comprise 5 per cent disinvestment of the government's share in PFC through putting 5,73,88,335 crore shares of Rs 10 on sale.

The government currently holds 89.78 per cent stake in the public sector company. The market capitalisation of PFC currently stands at Rs 28,854 crore.

The company had earlier divested 10 per cent stake through an initial public offering (IPO) in 2007.

After the proposed FPO, government's stake may go down to about 85 per cent.

The statement said that the reservation of equity shares for PFC employees are subject to the limit prescribed for retail investors by SEBI, which will not exceed 0.12 per cent of the issue size.

A discount of 5 per cent of offer price will be given to retail individual investors and eligible employees.

The public offer would help PFC to meet the eligibility requirement of maintaining a CRAR (Capital To Risk Assets Ratio) of 15 per cent for industrial finance company status.

The FPO will also enhance equity base of the company to enable it to meet the growing future investment needs of the power sector.

PFC is a non-banking financial institution that provides loans for various power projects in generation, transmission and distribution sector as well as for renovation & modernisation (R&M) of existing power projects.

The government has set a target of raising Rs 40,000 crore from disinvestment the current financial year, against Rs 25,000 crore in the previous close.

Source: Government approves PFC follow on public offer - Business Today - Business News