Engineering company Bharat Heavy Electricals Limited (BHEL) announced a plan to invest up to Rs 3,064.46 crore in Bharat Coal Gasification and Chemicals Ltd. The investment will be made over four years in a joint venture with Coal India, with BHEL holding 49% equity and Coal India holding 51%.
The joint venture’s primary goal is to establish a coal-to-ammonium nitrate plant with a daily capacity of 2,000 tonnes. Additionally, BHEL’s board has approved the creation of another joint venture with Titagarh Rail Systems Limited for the comprehensive maintenance of Vande Bharat Sleeper trains.
Following the necessary clearances, the joint venture agreement will be finalized with any required modifications. BHEL’s shares experienced a decline of about 2.75% to Rs 253 on the National Stock Exchange after these announcements, ending the week over 4.60% lower. Despite a 13.19% decline year-to-date, the stock has shown a 23% increase over the past 12 months.
