Team News Riveting
New Delhi, August 11
Bharat Heavy Electrical Limited (BHEL) today transferred its stake in the BHEL-Electrical Machines Limited (BHEL-EML) to the Government of Kerala.
“Pursuant to signing of “Agreement of Sale” between BHEL and Government of Kerala and approval of the same by Board of Directors of BHEL Electrical Machines Limited, it is informed that BHEL has
transferred its complete 51 per cent share held in BHEL Electrical Machines Limited to Government of Kerala and its representatives on 11.8.2021,” the company said in a regulatory filing.
BHEL-EML was incorporated in 2011, by acquiring the Kasaragod unit of KEL, a State PSU, as a joint venture with the Government of Kerala. BHEL had 51 per cent equity in the JV while the Kerala government held 49 per cent. The company with 174 employees was running on loss.
BHEL was unwilling to invest any amount as per the agreement, and also wanted to exit the JV for which the Kerala government gave its consent in 2017. In May this year, the Centre gave its approval for the transfer of the central public sector undertaking Bharat Heavy Electrical Limited’s (BHEL) 51 per cent stake in BHEL-EMLin Kasaragod.
The decision is on the basis of a Cabinet decision of September 2019 to purchase the shares following the Centre’s decision to divest its shares in BHEL-EML.
BHEL Electrical Machines Ltd., Kasaragod is one of the prominent manufacturers in the field of Rotating Electrical Machinery, catering to various sectors. The major customers are Indian Railways and Defence. The product line includes Brushless Alternators, Train Lighting Alternators, Traction Machines, Induction Motors and Diesel Generator Sets.
