Bharat Heavy Electricals Limited (BHEL), a leading public sector engineering and manufacturing company, faced a setback in its expansion plans while simultaneously securing a new order from Indian Railways. The company's stock closed at ₹234.60 on the BSE, down by ₹1.45 or 0.61%.

Joint Venture Proposal Rejected

During a board meeting, BHEL's directors acknowledged that the Department of Investment and Public Asset Management (DIPAM) did not approve the proposed joint venture between BHEL and REC Power Development and Consultancy Limited.

The company secretary, Dr. Yogesh R Chhabra, in a regulatory filing, stated:

"The Board of Directors of BHEL in its Meeting held today has noted that DIPAM has not agreed to the proposal for formation of a Joint Venture between BHEL and REC Power Development and Consultancy Limited."

New Railway Order Secured

In a separate development, BHEL has won a significant order worth ₹22.87 crore from the South Western Railway division of Indian Railways. The contract involves the design, supply, and installation of KAVACH equipment, a crucial safety system for railways.

Key Points of the Railway Order:

This order reinforces BHEL's position in the railway sector and showcases its capabilities in manufacturing advanced safety equipment for India's expansive rail network.

Management Changes

In addition to these developments, BHEL announced changes in its senior management:

1. Shri V Shrinivas Rao has been appointed as General Manager & Head (HBG), PS-BG II, Noida, reporting to the Director (Power).
2. Shri Ajay Kumar has been appointed as General Manager & Head (PEM & CPC), Noida, also reporting to the Director (Power).

These appointments are effective immediately and come following the superannuation of two executive directors.

As BHEL navigates through these corporate developments and new opportunities, investors and industry watchers will be keen to see how the company adapts its strategy in light of the joint venture setback and leverages its strengths in the power and railway sectors.

Bharat Heavy Electricals Limited (BHEL), a leading Indian public sector engineering and manufacturing company, faced a setback as the Department of Investment and Public Asset Management (DIPAM) declined to approve its proposed joint venture with REC Power Development and Consultancy Limited.

Board Meeting Details

The Board of Directors of BHEL convened on September 25, from 4:00 PM to 5:30 PM, to discuss the status of the proposed joint venture. During this meeting, the board noted that DIPAM had not agreed to the proposal for forming a joint venture between BHEL and REC Power Development and Consultancy Limited.

Background

This development follows a previous clarification issued by BHEL on May 10, regarding the same matter. The company had been exploring the possibility of a strategic partnership to potentially enhance its capabilities and market presence in the power sector.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, BHEL promptly disclosed this information to the stock exchanges. Dr. Yogesh R Chhabra, Company Secretary of BHEL, signed the official communication addressed to both the BSE Limited and the National Stock Exchange of India Ltd.

Other Corporate Updates

While the joint venture news took center stage, BHEL also announced other corporate developments:

Trading Window Closure

BHEL informed that the trading window for dealing in company securities will remain closed for designated persons and their immediate relatives from October 1. This closure will extend until 48 hours after the financial results for the quarter ending September 30 are filed with the stock exchanges.

Changes in Senior Management

The company appointed two new officials to its senior management:

• Shri V Shrinivas Rao as General Manager & Head (HBG), PS-BG II, Noida
• Shri Ajay Kumar as General Manager & Head (PEM & CPC), Noida

Additionally, two senior executives superannuated from the company's services on September 24:

• Shri Pankaj Rastogi, Executive Director (HBG), PS-BG II, Noida
• Shri Praveen Kishore, Executive Director (CPC), PS-HQ, Noida and PS-PEM- Addl. Charge

These corporate updates highlight the ongoing changes and challenges faced by BHEL as it navigates the dynamic landscape of the Indian power and engineering sector.