Tiruchirapalli (Tamil Nadu), Aug 15: Power equipment major Bharat Heavy Electricals Ltd (BHEL) will invest Rs.485 crore ($100 million) to expand its boiler division, a senior official said here Saturday.

"The expansion will be completed by 2011 and the division's capacity will go up to 15,000 MW per annum," BHEL executive director A.V. Krishnan said here at a flag hoisting ceremony on Independence Day.

At present, the company's capacity is 10,000 MW.

Once the expansion is complete, BHEL will start making thermal and nuclear power plant boilers.

BHEL has set up a new boiler unit here at an investment of Rs.732 crore. The high pressure boiler plant would be inaugurated shortly, Krishnan said.

A company official said the unit was already functional.

The boiler division is expected to achieve a turnover of Rs.10,000 crore this fiscal against the budgeted figure of Rs.9,506 crore, Krishnan said, referring to the good performance of the division.