BHEL stake sale on the table

Indian Government may shed a 10% stake in state-run Bharat Heavy Electricals Ltd (BHEL), a process expected to bring in around Rs 10,000
crore into the disinvestment kitty.

On Friday, heavy industry and public enterprises minister Vilasrao Deshmukh confirmed the government was considering the proposal to offload a 10% stake in the power equipment maker, where it currently holds a 67.72% stake.

BHEL is currently valued at Rs 28,000 crore and has been classified "navratna," which gives the company management more autonomy than other public sector firms.

A 10% stake sale is likely to raise around Rs 10,000 crore, said a market analyst who asked not be named. The BHEL scrip rose 2.83% to close at Rs 2,090.50 at the BSE on Friday.

"The point of disinvestment (in BHEL) is still under consideration," Mr Deshmukh said in his first media interaction after taking office. "The government definitely has a positive thinking on that line," he said.

BHEL's top officials are now likely to meet Mr Deshmukh on Monday, according to a company official.

The minister also announced that the company would enter into an agreement with Indian Railways for supplying stainless steel energy-efficient EMU coaches on a long term basis, as part of the government's 100-day agenda. BHEL will also synchronise eight thermal and hydro sets to generate 1,200 MW capacity in the next 100 days, he said.

The company will enter into agreements with state government power generation companies to form joint ventures (JVs) for super critical thermal power plants.

BHEL currently makes equipment that can generate 10,000 MW power capacity and is further augmenting this capacity to 15,000 MW per annum by December 2009. It plans to hike its capacity to 20,000 MW by 2011-12.

ref:
http://economictimes.indiatimes.com/Market-News/BHEL-stake-sale-on-the-table/articleshow/4678483.cms