Centre rap pushes BHEL to diversify beyond thermal

New Delhi: State-run Bharat Heavy Electricals Ltd (BHEL) is targeting opportunities in coal gasification and coal-to-chemicals as part of efforts to bolster its financial health.

While BHEL will commission fewer coal-fired power plants this fiscal year, it's expected to make progress in hydro power, pumped-storage projects and renovation and modernisation of ageing hydro plants, said company executives.

BHEL's latest initiatives followed a rap from the Centre after the company failed to meet the criteria for Maharatna companies, raising the possibility that it may be downgraded to Navratna status.


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According to an assessment in June, BHEL didn't meet the criteria of having an average annual profit after tax of more than ₹5,000 crore during the last three years for its Maharatna status.

"BHEL has a record executable order book of around ₹2.60 lakh crore, with the core thermal business continuing to remain its principal revenue anchor," a senior company executive told ET. "However, the company is seeking to build additional growth engines in strategic non-thermal businesses as the power sector undergoes a structural shift."

BHEL also has an outstanding hydro order book of about ₹5,500 crore. "Leveraging the established hydro-equipment and project-execution capabilities to participate in upcoming pumped-storage projects, equipment supplies, rehabilitation work and associated electrical systems is a growing opportunity," the executive said.