BHEL Shareholders Approve Amendment Removing Joint Venture Investment Limits
BHEL successfully obtained shareholder approval through postal ballot for amending Article 69(22) of its Articles of Association, removing previous investment restrictions of 15% networth per project and 30% total networth limits. The new framework provides unlimited investment flexibility for joint ventures and subsidiaries globally, subject to government guidelines, aligning with the company's Maharatna status.
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Bharat Heavy Electricals Limited (BHEL), a Maharatna public sector undertaking, has successfully secured shareholder approval for a significant amendment to its Articles of Association. The company announced on December 18, 2025, that members approved the special resolution through postal ballot, officially removing previous investment limitations for establishing joint ventures and subsidiaries.
Amendment Details and Impact
The approved amendment modifies Article 69(22) of BHEL's Articles of Association, replacing restrictive investment clauses with enhanced operational flexibility. This change aligns BHEL's powers with its Maharatna status, granted in 2013, providing greater strategic autonomy in business expansion.
| Aspect: | Old Article | New Article |
|---|---|---|
| Investment Scope: | Financial joint ventures and wholly-owned subsidiaries only | All joint ventures and subsidiaries |
| Single Project Limit: | 15% of networth (max ₹1,000 crores) | No specific limit |
| Total Investment Cap: | 30% of networth across all projects | Not specified |
| Divestment Powers: | Not mentioned | Explicit power to divest shareholding |
| Geographic Scope: | India and abroad | India and abroad |
| Compliance Framework: | Not specified | Subject to government guidelines |
Postal Ballot Process Completion
The amendment was approved through a comprehensive postal ballot process that concluded on December 18, 2025. Dr. Yogesh R Chhabra, Company Secretary, communicated the results to stock exchanges including BSE Limited and National Stock Exchange of India Limited, fulfilling regulatory requirements under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Strategic Implications
The approved amendment removes significant operational constraints that previously limited BHEL's investment capabilities. Under the old framework, the company faced strict percentage-based limits on networth investments and was restricted to specific types of subsidiaries. The new clause provides comprehensive flexibility for establishing joint ventures and subsidiaries while maintaining compliance with government guidelines.
Regulatory Compliance and Accessibility
In accordance with Regulation 46 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the amended Articles of Association are now accessible on BHEL's official website at www.bhel.com . This ensures transparency and provides stakeholders with immediate access to the updated corporate governance framework.
The successful approval of this amendment positions BHEL for enhanced strategic partnerships and business expansion opportunities, both domestically and internationally, while maintaining appropriate regulatory oversight through government guidelines.
Historical Stock Returns for Bharat Heavy Electricals
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.93% | -2.10% | -0.88% | +10.83% | +31.12% | +358.82% |
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