BHEL's NBFC plan delayed, board seeks changes: CMD

Cash-rich power equipment giant BHEL’s plan to float a non-banking finance company (NBFC) has been delayed. The board of the Public Sector Unit (PSU) has asked consultancy company Credit Rating and Information Services of India Ltd (Crisil) to incorporate some changes before finalising the contours of the NBFC proposal. “Our consultant — Crisil — has worked out details and given the report to the board, which has asked them to make some changes. the revised report would be considered by the board again in the next one to two months,” BHEL Chairman B P Rao said.

“Certain working changes were sought by the board,” he said, but did not specify what changes the board has asked for. BHEL , which is sitting on a cash surplus of Rs 9,000 crore, plans to foray into NBFC space to fund power projects. Creation of the NBFC would help it to better utilise its cash surplus, especially in terms of financing infrastructure projects. BHEL’s operations are organised under three business verticals — power, industry and overseas business. The industry segment includes transmission, transportation and renewable energy. It has installed equipment with a total generation capacity of 100,000 Mw for utilities and captive and industrial users, according to the company website.