BHEL bags largest long-term contract

New Delhi: In the face of stiff competition under International Competitive Bidding (ICB), Bharat Heavy Electricals Limited (BHEL) has won the single-largest long-term rate contract from ONGC for the supply of Well Head assemblies, X-mas Tree Valves and other critical spares/accessories used in oil exploration.

ONGC's projected off-take from BHEL for this vital equipment is about Rs.200 Crore for the next three years for their onshore as well as offshore projects. Around 65 per cent of these orders will have deemed export status.

This is the second time BHEL has received such a contract from ONGC and reflects the customer's confidence in the company's capabilities. BHEL had earlier received a similar long term contract from ONGC in February, 2004 for Well Head assemblies and X-mas Tree Valves, which expired in February, 2007. Significantly, with an over 90% share, BHEL is the market leader in Well Heads and X-mas Tree equipment in the country.

Notably, BHEL's Trichy plant has the largest valve manufacturing facility in India, manufacturing valves ranging from 3 mm to 900 mm in size from carbon steel, low alloy steel and stainless steel. In addition, BHEL's contribution to ONGC includes refurbishment and upgradation of onshore oil rigs, supplied earlier.