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MHI Receives First Pump Order from BHEL

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Tokyo, May 18, 2010 - Mitsubishi Heavy Industries, Ltd. (MHI) and Bharat Heavy Electricals Ltd. (BHEL), a government-owned company in India to which MHI has licensed technologies for thermal power plant-use pumps, jointly received an order for 18 pumps as part of steam turbine generator package to be installed at a new thermal power generation plant. The pumps on order are for Units 1 and 2 of a 1,320 MW (megawatt) supercritical-pressure coal-fired power generation plant to be built by NTPC Ltd. at Barh in Bihar, in eastern India - NTPC's Barh II Project. This event marks the first order BHEL and MHI have received jointly. The delivery is scheduled in 2011.

The 18 pumps to be delivered are boiler feedwater pumps, boiler feedwater booster pumps and condensate pumps, six each. Three of each type will be installed respectively at the plant's Units 1 and 2 (660 MW each).

BHEL was in charge of order-taking. For each pump type ordered, MHI will supply three units of assembled pumps to BHEL. For the remaining three units, MHI will supply components and parts for assembly at BHEL, which will install all pumps at the site.

BHEL, encompassing 14 plants, is India's largest heavy electrical machinery manufacturer capable of handling the entire power plant construction process: from manufacture and supply of major components such as boilers, steam turbines, gas turbines, water turbines, generators and power transmission facilities to coordination of power plant construction on a turnkey basis. BHEL enjoys an overwhelming share in the domestic thermal power plant equipment market.

In 2007 MHI licensed to BHEL, design and production technologies of boiler feedwater pumps, boiler feedwater booster pumps, circulating water pumps and condensate pumps for subcritical- and supercritical-pressure thermal power plants with generation capacities between 500 and 1,000 MW.

NTPC, the largest government-owned electricity provider in India, plans to enhance its current 31,134 MW installed power generation capacity to 75,000 MW by 2017 in order to satisfy India's growing electricity demand associated with the country's robust economic growth. As an outgrowth of this mega-power generation capacity expansion plan, many large-scale projects are expected to take shape in the future.

MHI expects demand in India for supercritical-pressure coal-fired power plants with generation capacities in excess of 500 MW to increase significantly to accommodate the country's enormous electricity needs. Supercritical-pressure coal-fired power generation uses higher steam temperatures and pressures than subcritical power generation, and is more fuel-efficient and friendlier to the environment. By reducing coal consumption relative to power output, it is possible to cut not only carbon dioxide (CO2) emissions but also fuel costs.

Boosted by the NTPC's order, MHI will now further strengthen its relationship with BHEL and continue to contribute to easing India's tight electricity supply while simultaneously supporting efforts to prevent global warming.

About MHI Group

Mitsubishi Heavy Industries (MHI) Group is one of the world’s leading industrial groups, spanning energy, smart infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on spectra.mhi.com.