Reports suggest that power producers may cancel equipment orders worth at least Rs 21,000 crore placed with BHEL because of uncertainty about projects amidst the coal block de-allocation drive.

   The cancellation, if materialises, may affect the revenue of the company. As part of its de-risking strategy, the company plans to diversify into other areas like industrial, oil & gas and transportation businesses.

   At present, power accounts for 70 percent of the company’s revenue while the remaining balance is from non-power. This ratio would change to 60:40 in the next few years, with the non-power business growing to 60 percent.

   By October the company is expected to know how many orders would be cancelled, said AV Krishnan, Executive Director (Trichy Complex) BHEL. As a company, the firm sees opportunity in locomotive business. Transportation can contribute more revenue as every city would be having metro and mono rail, Krishnan said.

   BHEL plans to supply cracking towers and columns for refineries, and pressure vessels for petrochemical plants. It would also supply small industrial boilers, a business it exited years ago. The company’s piping business is also being substantially enhanced.