BHEL seeks JV partner for Propulsion Systems and digitalisation business in rail transportation

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BHEL has invited Expression of Interest (EoI) for Selection of Joint Venture partner for Propulsion Systems and its services, digitalisation business in rail transportation.

  • EOI Reference Number: BHEL/AA/JV_MA/EOI/2021/01
  • Last date of Submission of EoI response: 15.04.2021

Indicative Scope of Association:

  • BHEL is seeking response from companies/ OEM’s willing to invest and form equity JVC with BHEL to pursue business opportunities for Propulsion Systems and its  services, digitalisation business in rail transportation.
  • Prospective JV partner shall have a substantial stake in the proposed JV company. The exact shareholding structure shall be as mutually agreed between BHEL and JV Partner.
  • The proposed JVC will be a separate legal entity formed & registered in line with provisions of Indian Companies Act, 2013 with an independent Board comprising representatives from BHEL and JV Partner.
  • The purpose of JVC shall be to capture the market and develop engineering & manufacturing capabilities through localization of proven Propulsion Systems.
  • The Proposed JV shall establish a full-fledged marketing and manufacturing setup in India  along with an office comprising project manager, Engineering manager for addressing customers technical and after sales support requirements.
  • JVC will pursue business opportunities of Propulsion Systems(including its services and digitalisation business) in the rail transportation business for RRTS, Metrorail, Metrolite, Metro Neo, Monorail, High Speed Rail.
  • ‘Propulsion Systems’ shall include Traction Converter-Inverter, Traction-Inverter, Auxiliary Converter-Inverter including auxiliary supply modules and TCMS with complete system integration.
  • The prospective JV partner shall transfer/ license technology to the proposed JVCand the JVC be provided with exclusivity to manufacture and supply at least in India.
  • BHEL current technology portfolio of railways Propulsion Systems shall remain outside the ambit of the proposed JVC
  • As per requirement, BHEL’s capacities/ facilities may be considered for sharing with the JVC at appropriate commercial  considerations to  be  ascertained  separately through mutual agreement.
  • Duly registered companies as per the laws of their countries can participate in the EoI.
  • The prospective JV partner must possess capability in respect of Design,  Engineering, Manufacturing of Rail Propulsion Systems and its services, digitalisation.
  • The technology possessed by prospectiveJV partners must be non-infringing and it must be clear from third-party IP infringement claims.
  • Prospective JV partners must be technically competent to keep pace with advancement in rail Propulsion Systems.
  • To ensure sustained and profitable growth of the JVC, the JVC may venture into other adjacent / synergistic areas in future, with the approval of its parents-the shareholders.

About BHEL:

Bharat Heavy Electricals Limited (BHEL) is a Central Public Sector Enterprise, wherein Government of India is holding 63.06% of its equity. It is an integrated power plant equipment manufacturer and one of the largest engineering and manufacturing companies of its kind in India having an average turnover of about USD 3-4 billion.

  • The company is engaged in the design, engineering, manufacture, construction, testing, commissioning and servicing of a wide range of products and services for the core sectors of the economy, viz. Power, Transmission, Industry, Transportation, Renewable Energy, Oil & Gas and Defence with over 180 product offerings to meet the needs of these sectors.
  • BHEL has been designing and manufacturing rolling stock for rail and urban transportation. BHEL has also been manufacturing Motors, Power electronics and Controllers for various transportation applications at its various factories. BHEL also has a Battery Packaging facility for space applications. In transportation sector, BHEL is into the manufacture of complete electric and diesel electric locomotives and electrical assemblies/components including traction motors, traction transformers, power & auxiliary converters and controls, gear wheels etc.

Atmanirbhar Bharat Mission:

  • Moving ahead resolutely and in line with Prime Minister’s ‘Atmanirbhar Bharat’ mission, a number of initiatives were taken by the company in new business areas like transportation, defence & aerospace,  energy  storage business, among  others, which are expected  to improve the performance in years to come along with declaration of 2020 as the Year of transformation.  
  • Focused and all-out efforts are being made by the management in the areas of non-power business such as railways transportation, defence & aerospace, EPC in downstream oil & gas, industry 4.0 solutions and contract manufacturing in high technology areas.
  • Aiming at ensuring alignment of the company with the demands of the country under recent initiative of ‘Aatmanirbhar Bharat’ and improving capacity utilisation across  the company, BHEL is looking forward to developing and manufacturing Propulsion Systems for Railway transportation by leveraging its facilities to global OEMs capabilities to set up manufacturing base for the same in India.

BHEL Current Portfolio of Railway Transportation Business:

  • BHEL is a leading supplier of locomotives and propulsion electrics to Indian Railways for the last  50 years. Around  50% of  the  rolling  stock  of  Indian  Railways is equipped with  BHEL manufactured electrics. BHEL has also been manufacturing Motors, Power electronics andControllers for various transportation applications at its various factories. 
  • In  transportation sector, BHEL is into the manufacture of complete electric  and diesel electric  locomotives and electrical assemblies/components  including  traction  motors,traction transformers, power & auxiliary converters and controls, gear wheels etc.
  • At BHEL’s Jhansi plant, complete Electric Locomotives up to 6000 HPrating for mainline application of Indian  Railways, Diesel Electric Locomotives from 350 HP to 2600 HP rating are manufactured. 
  • Till  date, more  than 370 nos. of main line electric locomotives to Indian Railways and more than 250 nos. of diesel electric locomotives for shunting operations to different industries have been supplied.BHELJhansiplant with an installed capacity of 75 nos. locomotives per year, have state-of-the art facilities for manufacturing and fabrication of bogies, loco shells, under frames and other  mechanical  components  of  locomotives. 
  • BHEL has recently developed India’s first  state-of-the-art WAG7/ 9000 HPElectric Locomotive with regenerative capability. 
  • Among electrical propulsion equipment, BHEL manufactures and supplies traction motors, traction transformers, power converters(IGBT) & controls, auxiliary converters (IGBT) and vehicle control units for electric locomotives, diesel electric locomotives and EMUs. Manufacturing range includes conventional DC drive, IGBT based 3-phase drive equipment for various ratings for Locomotives, EMUs and MEMUs. 
  • BHEL has also been in the forefront of  providing maintenance and spares/replacement support to Indian Railways for their locomotive fleet. BHEL have full-fledged service department located at major centres in the country.

In case any amendment/ corrigendum is issued to this EoI, it shall be notified only at http://www.bhel.com.


Source: BHEL-EOI | Image Credit(representational): BHEL

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