Bharat Heavy Electrical Ltd (Bhel), India’s largest power equipment maker, has appointed Crisil as its consultant to help set up a non-banking finance company (NBFC).
“Crisil would take 2-3 months to work on the proposal,” said B P Rao, chairman and managing director, Bhel.
The feasibility report would suggest whether the company should launch a separate subsidiary for the financing business or it can remain a part of the mothership.
Bhel had invited expressions of interest from consultants for the non-banking venture in September.
The power equipment giant has cash reserves of over `10,000 crore and wants to utilise a part of it for lending to the infrastructure and power sectors.
Other sector players such as REC Ltd, Power Finance Corporation and NTPC are also exploring the opportunity to set up NBFCs to tap rising demand for loans.
While Power Finance Corporation is seeking a non-banking partner, Bhel is likely to go solo.
The Bhel board of directors also approved setting up of power equipment manufacturing facility at Latur in Maharashtra.
The facility will be in partnership with the Maharashtra government. Bhel has earmarked a capital expenditure of `300 crore for the unit.
ref:
http://www.dnaindia.com/money/report_bhel-hires-crisil-to-guide-its-non-bank-entry_1473667
Sunday, November 28, 2010
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