BHEL Gets DIPAM Thumbs Down For JV Plan With REC Power Arm

Bharat Heavy Electricals Ltd. on Thursday said its board has noted that the Department of Investment and Public Asset Management has not approved its proposed joint venture with REC Power Development and Consultancy Ltd.

The JV plan, first announced in March 2024, was aimed at jointly developing utility-scale renewable energy projects across India through a special purpose vehicle. RECPDCL, a wholly owned subsidiary of REC Ltd, had signed a memorandum of understanding with BHEL on March 15, 2024, in line with India’s clean energy transition goals.

Even as the renewable JV proposal is shelved, BHEL has been diversifying into new energy technologies. The Maharatna PSU recently inked a 10-year exclusive pact with Singapore's Horizon Fuel Cell Technologies to collaborate on hydrogen fuel cell-based rolling stock for the Indian market. The tie-up marks BHEL's entry into the hydrogen transportation segment.

On the conventional power front, BHEL also bagged a Rs 2,600 crore order from MB Power (Madhya Pradesh) Ltd. for supply of boiler and turbine generator equipment for a thermal power project. Manufacturing will be carried out at BHEL's Tiruchirappalli and Haridwar plants, with a completion timeline of 58 months.

BHEL, India's largest power generation equipment maker, remains a critical player in the country’s infrastructure growth, offering engineering solutions across energy, transport, and defence sectors, both in India and overseas.

Shares of BHEL closed 0.88% lower at Rs 233.94 apiece on the National Stock Exchange before the announcement, compared to a 0.66% fall in the benchmark Nifty. The stock has fallen 16.85% in the last 12 months but has risen 2.28% on a year-to-date basis.

Out of the 20 analysts tracking the company, eight have a 'buy' rating on the stock, nine suggest 'sell' and three recommend 'hold', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential downside of 7.1%.