Praful Patel anticipates growth in power sector will companies like BHEL, L&T

He said that slow down in the sector adversely affected BHEL's order book

A growth momentum in the power sector will help equipment manufacturers like BHEL and L&T, Minister of Heavy Industry and Public Enterprises Praful Patel today said.

He also ruled BHEL divestment in the market. The Minister added that slowdown in the sector has impacted adversely BHEL's order book.
    
The company's order book stood at about Rs 1.02 lakh crore at the end of September 2013.
    

"I think the growth and the revival of manufacturing in BHEL and other companies like L&T will pick up as the entire power sector looks to be growing in the coming years," Patel said on the sidelines 12th Auto Expo here.

"When the entire power sector has not seen any new projects coming up, it is but natural that all manufacturers of equipment will also be facing situation like which is currently there," he said.

The minister said the last one year wherein projects were delayed due to environmental and coal issues was an aberration.

The Minister last month had said that the government might choose the cross-holding route for 5% divestment in the state-owned BHEL.

The Finance Ministry has also proposed stake sale in the company to financial institutions through block deal route. State financial institutions include LIC and PSU banks.

In August 2011, the Cabinet had cleared selling government's 5% stake or over 12.23 crore shares in BHEL through follow-on public offer (FPO). The government holds a 67.72% stake in the Navratna company.
 
However, market conditions led to a delay in the issue and the company in April 2012 withdrew the draft prospectus filed with market regulator Sebi.

The government plans to garner Rs 40,000 crore through disinvestment in the current fiscal. So far it has managed to raise about Rs 3,000 crore through PSU stake sales.