Centre pushes BHEL to diversify beyond thermal

New Delhi: The state-run Bharat Heavy Electricals Ltd (BHEL) is looking to diversify its operations beyond thermal power generation, with a focus on coal gasification and coal-to-chemicals. While the company will commission fewer coal-fired power plants this fiscal year, it is expected to make strides in hydro power, pumped-storage projects and the modernisation of ageing hydro plants, according to company executives.

The move comes in response to a stern warning from the Centre, which stated that BHEL failed to meet the criteria for Maharatna status, potentially leading to a downgrade to Navratna status. Back in June, BHEL's assessment revealed that it did not meet the requirement of generating an average annual profit after tax of over ₹5,000 crore over the past three years.

Despite this setback, BHEL boasts a substantial executable order book of approximately ₹2.60 lakh crore, with the core thermal business continuing to be its primary revenue source. Nevertheless, the company is actively seeking to develop new growth areas in strategic non-thermal industries, as the power sector undergoes a significant transformation.

BHEL also possesses an outstanding hydro order book valued at around ₹5,500 crore. By leveraging its existing hydro-equipment and project-execution expertise, the company aims to capitalize on the growing opportunities in pumped-storage projects, equipment supplies, rehabilitation work, and associated electrical systems.