Bharat Heavy Electricals Limited has announced the closure of its capital investment scheme for establishing a new manufacturing plant at Karkhiyaon, Varanasi. The decision was approved by the company's Board of Directors during a meeting held on January 19, 2026.

Board Meeting Details

The Board of Directors convened to discuss and approve the closure of the previously announced capital investment scheme. The meeting commenced at 10:50 AM and concluded at 11:28 AM on January 19, 2026.

Investment Scheme Background

The original capital investment scheme for the Varanasi plant was initially approved by the Board of Directors and communicated to stock exchanges on January 23, 2024, under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The scheme was designed to establish a new BHEL manufacturing facility at Karkhiyaon, Varanasi.

Reasons for Closure

The Board's decision to close the investment scheme was made considering the current business landscape. The company has determined that the products originally planned for manufacturing at the new Varanasi plant will now be produced at other existing BHEL locations.

Regulatory Compliance

The announcement was made in compliance with Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The communication was signed by Dr. Yogesh R Chhabra, Company Secretary, and submitted to both BSE Limited, Mumbai and National Stock Exchange of India Ltd., Mumbai.

Strategic Reallocation

Instead of establishing the new facility in Varanasi, Bharat Heavy Electricals Limited will utilize its existing manufacturing infrastructure at other locations to produce the products originally designated for the Varanasi plant. This strategic reallocation allows the company to optimize its manufacturing operations while adapting to current market conditions.

Bharat Heavy Electricals Limited (BHEL) has announced a significant operational decision regarding its manufacturing infrastructure. The company's board has approved the early closure of its Varanasi plant scheme, marking a strategic shift in its production operations.

Strategic Operational Restructuring

The decision to close the Varanasi plant ahead of schedule reflects BHEL's response to the current business landscape. The company has indicated that production activities currently handled at the Varanasi facility will be redistributed to other manufacturing locations within its operational network.

Production Relocation Plans

As part of this restructuring initiative, BHEL plans to shift the production operations from the Varanasi plant to alternative facilities. This move is designed to optimize the company's manufacturing capabilities while adapting to prevailing market conditions and business requirements.

Business Landscape Considerations

The early closure decision appears to be driven by the current business environment, suggesting that BHEL is taking proactive measures to align its operational structure with market realities. This strategic adjustment demonstrates the company's focus on maintaining operational efficiency across its manufacturing network.

The relocation of production activities to other facilities within BHEL's network is expected to ensure continuity of operations while potentially improving overall operational effectiveness. This decision reflects the company's commitment to optimizing its manufacturing footprint in response to evolving business conditions.