BHEL share sale not in this fiscal due to 'terrible scenario' in power sector: Praful Patel

NEW DELHI: Disinvestment in Bhel will not happen in this financial year due to the "terrible scenario" in the power sector, Heavy Industries and Public Enterprises Minister Praful Patel said today.

Government is aiming to raise Rs 30,000 crore through stake sale in public sector units in this fiscal.

"Bhel disinvestment will not happen in the current fiscal (2012-13), because of the terrible scenario in the (power) sector," Patel told reporters here.

Asked whether the government will launch the follow on share sale of the power equipment maker in the next fiscal, he said, "We will take a call (according to the situation)."

Sources, however, said that Finance Ministry is pushing for stake sale in PSUs to meet the disinvestment target for the current fiscal.

Bhel is facing order crunch from the power companies. The banks, on the other hand, are shying away from lending to power projects which have not received environmental clearances thereby causing gloom in the industry.

Last year, before announcing its annual results, the company withdrew the its initial papers for the FPO that it filed with the market regulator SEBI.

Bhel had filed draft prospectus in September 2011 for the follow-on public offer (FPO) under which the government planned to offload five per cent stake in the company.

The sale of government's five per cent stake in the power equipment maker was expected to fetch over Rs 4,000 crore.

Shares of the company closed at Rs 227.70, up 2.36 per cent on the BSE.