Govt may sell 5% in Bhel to other PSUs to raise Rs 2,100 cr

The government plans to sell 5% stake in electrical equipment major BHEL next month through a block deal to state-owned financial institutions and PSUs to raise close to Rs 2,100 crore. The move follows a decision by an empowered group of ministers last week, clearing sale of 10% stake in Indian Oil Corporation through a block deal to Oil India and ONGC, with an aim of garnering close to R5,000 crore. With these block deals, which would strengthen the practice of cross-holdings amongst the largest PSUs, and R20,000 crore that Coal India is set to hand out to it by way of a special dividend and dividend distribution tax, the government intends to reduce the shortfall in its receipts and fulfill the promise of reducing fiscal deficit to 4.8% of the GDP. “The disinvestment programme for BHEL is on and the stake sale may happen in the first half of February, so that the process is completed before the election code of conduct comes into play. more at: http://www.financialexpress.com/news/govt-may-sell-5-in-bhel-to-other-psus-to-raise-rs-2100-cr/1219133

BHEL completes transmission link six months ahead of schedule

In a major milestone that will give a big boost to the Southern Grid and availability of power in the Southern region, state-run Bharat Heavy Electricals Limited (BHEL) on Monday announced that it had successfully synchronised and commissioning the 765/400kV substation at Raichur in Karnataka, a part of the transmission link of Power Grid Corporation of India Limited (PGCIL) built Southern end of the 765 kV Raichur-Sholapur link. With the commissioning of the 765kV Raichur-Sholapur transmission link, the Southern Grid has been now harmonised with the North-East-West Grid thus fulfilling the ambition of one nation one grid one frequency. BHEL constructed project includes design, engineering, manufacturing, supply, erection, testing and commissioning of the 765/400 kV sub-station package at Raichur. The completion of the project will now allow import of electricity from other regions to the Southern region during peak demand as well as export of surplus power from the Southern region during off-peak demand. ``BHEL is proud to have been associated with the execution of this historic transmission link. BHEL has always been committed to the nation’s power transmission programme and this achievement reaffirms its commitment to the growth of the transmission sector,’’ a BHEL spokesperson said in a statement in New Delhi. ref: http://www.thehindu.com/news/national/bhel-completes-power-transmission-substation-at-raichur/article5544757.ece

Banks, cash-rich PSUs keen to buy Govt stake in BHEL

Public sector banks and cash-rich Government-owned companies are keen to pick up a stake in Bharat Heavy Electricals Ltd (BHEL). This will help the Government in its disinvestment programme. The Finance Ministry has written to the Heavy Industries Ministry seeking its views on selling BHEL’s shares to other Central Public Sector Enterprises (CPSEs). The Government aims to sell 5 per cent of the shares of the power generation equipment maker. “After the Finance Ministry’s letter last week, BHEL has been asked to consult with market intermediaries. Accordingly, we will revert to the Finance Ministry about the plan for selling stakes to different entities,” a senior Heavy Industries Ministry official told Business Line. The ‘Maharatna’ tag has prompted many banks and cash-rich companies to show interest in BHEL. Selling shares to institutions will help in two ways. First, the Government will get the money it is aiming for, and second, BHEL’s already-subdued shares will not be affected. ref: http://www.thehindubusinessline.com/companies/banks-cashrich-psus-keen-to-buy-govt-stake-in-bhel/article5538947.ece

Kusumjit Sidhu resigns from BHEL board

Bharat Heavy Electricals Ltd (BHEL) today said Kusumjit Sidhu has resigned from its board of directors. Sidhu's resignation from the board is effective from January 1. "... Consequent upon relinquishing charge of AS & FA, DIPP (Department of Industrial Policy and Promotion) to assume the charge of Secretary, Department of Public Enterprises, Kusumjit Sidhu has resigned from the position of part-time official director," the company said in a regulatory filing. ref: http://www.business-standard.com/article/pti-stories/kusumjit-sidhu-resigns-from-bhel-board-114010201011_1.html

Bhel chief 1st PSU head to get extension post retirement

The Prime Minister's Office (PMO) on Monday decided to grant two years' post-retirement extension to BP Rao, chairman of state-run power gear-maker Bhel, a day before his superannuation. This is the first time ever that the head of a public sector undertaking (PSU) is being given an extension after retirement and changes the rules of succession in state entities by setting a precedent. Rao's case is bound to prompt ministers to use post-retirement extension as a carrot to get their way with chiefs of public sector entities under them. ref: http://timesofindia.indiatimes.com/business/india-business/Bhel-chief-1st-PSU-head-to-get-extension-post-retirement/articleshow/28159430.cms

Bhel in focus after securing large order

Bharat Heavy Electricals (Bhel) after trading hours on Thursday, 26 December 2013, said that the company has bagged an order for the supply of Turbine Generator (TG) Package for 2x500 MW TPS at Neyveli. The order valued at Rs 1023 crore has been secured by Bhel from Neyveli Lignite Corporation (NLC) for NLC's upcoming 1,000 MW Neyveli New Thermal Power Project at Neyveli, Tamil Nadu. Bhel's scope of work under the contract includes manufacture, supply, erection, testing and commissioning of Steam Turbine Generators & Auxiliaries along with associated civil works. ref: http://www.business-standard.com/article/news-cm/bhel-in-focus-after-securing-large-order-113122700089_1.html

BHEL wins Rs 1,023-cr contract from Neyveli Lignite Corp

BHEL has bagged a Rs 1,023 crore contract from Neyveli Lignite Corporation for supplying turbine generator package at a thermal power project in Tamil Nadu. "Valued at Rs 1,023 crore, the order has been secured by BHEL from Neyveli Lignite Corporation Limited (NLC), for their upcoming 1,000 MW Neyveli New Thermal Power Project (NNTPP) at Neyveli, Tamil Nadu," BHEL said in a statement. BHEL's scope of works includes manufacture, supply, erection, testing and commissioning of steam turbine generators & auxiliaries along with associated civil works. BHEL has earlier secured orders from NLC for their 2x500 MW Tuticorin, 2x250 MW Neyveli and 2x125 MW Barsingsar projects, the statement said. BHEL has established the capability to deliver power plant equipment of 20,000 MW per annum. ref: http://www.business-standard.com/article/companies/bhel-wins-rs-1-023-cr-contract-from-neyveli-lignite-corp-113122400822_1.html