Flush with funds, state-run power equipment manufacturer Bharat Heavy Electricals (Bhel) is entering the financing business in a big way. Keen to transform itself into a provider of total solutions to generation projects, Bhel has decided to float a non-banking finance company (NBFC) along with a strategic partner to finance power projects.
“It (the proposed NBFC) will act as our investment arm. Bhel will pick up a minority stake in the proposed NBFC and get other strategic investors on board,” Bhel chairman BP Rao told FE. “It will help improve our business prospects. Besides, it will also allow us to maximise returns on our cash reserves,” Rao said.
Bhel has started the process to select a consultant which could undertake a feasibility study and advise it on setting up the NBFC.
Bhel plans to leverage the funding support to attract potential customers for its equipment. At the same time, it also wants to optimise returns on its cash reserves of Rs 10,000 crore, mostly parked in low-yielding government securities
More at:
http://www.indianexpress.com/news/bhel-plans-nbfc-for-power-projects/678738/
Tuesday, September 7, 2010
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