BHEL jumps after clarification on MoU with CIL and NLCIL

Bharat Heavy Electricals (BHEL) rose 2.56% to Rs 62.20 after the company clarified it has entered into a 'non-binding' MoU with Coal India (CIL) and NLC India (NLCIL) on 12 October 2022 for setting up Coal Gasification based plants.

This MoU is only an intention to set up a Coal to Ammonium Nitrate Project with CIL based on gasification of high ash Indian coal, and a lignite-based gasification pilot plant with NLCIL for power generation, utilising BHEL's indigenously-developed Pressurised Fluidised Bed Gasification (PFBG) technology.

Only after due diligence and finalising all the terms and conditions, the parties may consider to enter into definitive agreement with the approval of BHEL's board and necessary approvals from the Government, as applicable.

"Once the parties enter into a definitive agreement, the stock exchange would be duly notified. As such, there is no material impact of the referred newsarticle on the Company," BHEL said in a clarification.

State-run BHEL is engaged in design, engineering, construction, testing, commissioning and servicing of a wide range of products and services to the core sectors of economy. As of 30 June 2022, the Government of India held 63.17% stake in the company.

The company reported a consolidated net loss of Rs 187.99 crore in Q1 FY23 as compared to a consolidated net loss of Rs 448.20 crore in Q1 FY22.

Shares of Coal India rose 1.07% and NLC India rose 1.02% on the BSE.

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