BHEL eyes Strategic PSU tag as Centre considers categorization

In a bid to revamp its fortunes, Bharat Heavy Electricals Ltd (BHEL) is eyeing the possibility of being categorized as a strategic public sector undertaking (PSU). According to sources close to the development, the Centre is considering BHEL's case for a strategic PSU status, which could keep it out of consideration for disinvestment and safeguard its major orders.

The move comes as BHEL diversifies into newer areas like electric mobility and solar power, witnessing a revival in its fortunes with large orders in thermal power and railways. The company's order book has swelled to ₹1.6 trillion, with 85-90% of outstanding work already completed, according to industry officials.

The Department of Public Enterprises is likely to engage in consultations with other departments including the Ministry of Heavy Industries and DIPAM on this matter. If successful, BHEL would be given a strategic PSU tag, shielding it from disinvestment plans.

A parliamentary committee has also recommended that BHEL be categorized as a strategic PSU, citing the company's involvement in critical sectors such as hydro power, nuclear power, defence, space, renewable energy, and international operations.

The latest move comes amidst India's efforts to become a global leader in clean energy. The country aims to generate 500 GW of non-fossil capacity by 2030. BHEL is set to focus on its transmission business as the need for stable energy grid grows with integration of renewable power sources.

Bhil has been actively engaged, receiving orders worth ₹78,000 crore in 2023-24, a record high, mainly from the thermal power and railway sectors. The company's shares have seen significant growth, trading at ₹211.25 per share on BSE.

The strategic PSU tag would mark a positive shift for BHEL, giving it an upper hand over other PSUs as India sets its sights on achieving new targets in clean energy, renewable power, and national security interests.