BHEL to
beat power
sector woes

New Delhi: Faced with persisting challenges in the power sector, the state-run, Bharat Heavy Electricals Limited (BHEL), is working in a ‘big way’ to diversify the firm’s business, especially in the areas of defence and nuclear power, according to an official. BHEL is a dominant player in the power sector. However, a slew of sectoral woes including acute fuel shortages and financial constraints are posing challenges for the public sector major.

A government official in the know said that BHEL is now trying to ‘diversify in a big way’ and is working on various new strategies. The company is focusing more on sectors such as defence, nuclear power, transportation and railways. “Against the backdrop of issues in the power sector, the Heavy Industry Ministry expects BHEL to move in new directions as well as utilise new opportunities in transportation and defence sectors,” the official said. Besides developing firm’s capabilities in the nuclear power sector, BHEL is strengthening its position in supply of locomotives to the railways.

Recently, BHEL along with Nuclear Power Corporation received an order for four 700 mega watt (MW) turbine generator sets. The state-run entity is also working on water desalination systems apart from renewable energy areas such as photo voltaic systems. During the 2011-12 fiscal year, BHEL raked in a net profit of Rs 7,039 crore on a turnover of Rs 49,244 crore.

During the same period, the entity’s net worth stood at Rs 25,373 crore. The company’s existing order book is at Rs 1.30 lakh crore. With a final dividend payout of 184 per cent, BHEL has paid an equity dividend of 320 per cent for fiscal 2011-12, as against 311.5 per cent paid in the year before. At Rs 1,567 crore, this is the highest-ever dividend in percentage as well as value terms paid by the company so far.PTI