BHEL looks to invest Rs 9k cr surplus in power projects

Posted By: Religare
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BHEL looks to invest Rs 9k cr
Having a surplus of over Rs 9, 000 crore, Bharat Heavy Electricals Ltd. is planning to invest in a joint venture by picking up equity in state power projects. The decision is intended to generate revenue as well as business for the PSU. "...We are putting this money in joint ventures offering state generation companies equity in their power plants. It is a better way to invest money and generate business for the company," BHEL CMD BP Rao said here today.

Further, with already have entered into the joint ventures with states like Maharashtra, Madhya Pradesh, Karnataka and Tamil Nadu, BHEL is likely to invest Rs 3,000 crore in these joint venture which are either coal-based or gas-based power plants. This step would help the state owned power equipment maker to pick up 25% equity, with remaining 75% of equity coming from the state generation firms. Additionally, BHEL has also kept the option of existing from the JV after 5-6 years of commissioning of the project.

In order to make the investment successful, BHEL has appointed a team consisting of consultants such as Kotak Mahindra, Merrill Lynch, Ernst & Young. To explore for the market that would assure the best returns.

Read more about: bhel, bse, nse, engineering
Story first published: Monday, June 13, 2011, 10:30 [IST]
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