Monday, January 18, 2021

Four to Five non-core manufacturing units of BHEL could be sold

- Advertisement -

Four to Five non-core manufacturing units of BHEL coming upNew Delhi, Sep 16 (IANS) State-owned Bharat Heavy Electricals Ltd (BHEL) may sell four to five units of its non-core manufacturing business under the government’s asset monetisation process during the ongoing financial year.

The government also plans to dilute its equity in power equipment manufacturing entity to 26 per cent in phases under the plan unveiled in this year’s budget.

According to official sources, out of the total 16 manufacturing units of the company, a few units which do not have material synergies with its core business, such as transportation and water would be put to sale.

Asset monetisation of public sector enterprises has been in the government’s agenda for some time now, given the fiscal pressure the Centre is in and the companies too are going through a rough financial phase.

READ ALSO:  Merkel backs WHO, seeks more international cooperation

The sale of the non-core units of BHEL is among the government’s plan to monetise its stake in public sector units (PSU).

The businesses of the ‘Maharatna’ company include power, transmission, transportation, renewable energy, water, defence and aerospace, industrial products and systems, and energy storage solutions.

According to latest data from the NSE, the Centre holds 63.17 per cent stake in the company and the rest is held by banks, foreign holdings, insurance companies and others and has a market capitalisation of around Rs 18,000 crore.

BHEL’s transportation business deals in manufactures locomotives, metro coaches, electric rolling stock, electrics for urban transportation system and railway track electrification.

In its water resources segment, the company provides turnkey solutions for power plants, industries and municipal segments and manufactures pre-treatment plant, sea water reverse osmosis and demineralization plant, effluent treatment plant, sewage treatment among others.

READ ALSO:  Cinema can disintegrate discrimination in society: Amitabh

The electrical major closed the financial year 2018-19 with top and bottom line growth. The standalone net profit jumped by 50.7 per cent to Rs 1,215 crore during the financial year ended March 31, 2019, against Rs 807 crore in the previous fiscal. On the consolidated basis, profit was up at Rs 1,009.16 crore from Rs 438.19 crore in the previous fiscal.

READ ALSO:  Wanted to tell the story of Kashmiri Pandit sover a decade: Chopra

However, during the first quarter of financial year 2019-20, the company reported a standalone loss of around Rs 216 crore. This very weak financial position is also felt to be a reason behind the government’s likely move to sell few of the non-core units.

India Updates
India Updates is an independent news & Information website. Follow us for regular updates on News and Information.

Follow Us On

Related News


Please enter your comment!
Please enter your name here

Trending Topics In India

Covid 19 India Updates

Trending News In India

Trending Showbiz

Trending Sports

Latest Trending News In India

Arm-twisting tactics won’t work: Punjab CM again warns Centre

Chandigarh, Jan 18 (IANS) Condemning the NIA notices issued to several farmers and their supporters amid the anti-farm laws agitation, Punjab Chief Minister Amarinder...

‘Vaccine won’t kill you’: AIIMS Director allays fears

New Delhi, Jan 18 (IANS) AIIMS Director Randeep Guleria on Monday allayed apprehensions about the coronavirus vaccines and assured that the side-effects will not...

We will not quarrel, but celebrate R-Day: Farmer leader Rakesh Tikait

Ghazipur, Jan 18 (IANS) The farmers protesting against the new Central farm laws have announced a 'Tractor March' on Republic Day. On Monday, the...

Aus seeks info on deaths in Norway after Pfizer vaccination

Sydney, Jan 18 (IANS) Australian Health Minister Greg Hunt said that the country is seeking urgent information on the deaths of 29 elderly Norwegian...