NEW DELHI: State-run BHEL is eligible to seek the Maharatna status, which would provide the power equipment maker with more financial autonomy, according to the Department of Public Enterprises.
“The company meets the eligibility criteria for grant of Maharatna status,” a Department of Public Enterprises (DPE) official said.
A Maharatna PSU can take decisions for up to Rs 5,000 crore investment without the Cabinet approval. Currently, BHEL is a Navratna company which allows it to make investments only up to Rs 1,000 crore without the Cabinet nod.
The Heavy Industries Ministry, the administrative ministry of BHEL, has to first move the proposal for Maharatna status to the DPE, the official added.
To be eligible for Maharatna status, a public sector company should have an average annual net profit of over Rs 5,000 crore in the last three years, among others.
As per the DPE guidelines, other eligibility norms include an average turnover of over Rs 25,000 crore as well as average net worth of more than Rs 15,000 crore in the last three financial years.
Last year, Bharat Heavy Electricals Ltd (BHEL) had sought the coveted status but it did not meet some of the eligibility criteria.
Now, the company meets Maharatna’s eligibility criteria in terms of average net profit, turnover and net worth for the past three financial years.
BHEL saw its net profit jump 14 per cent to Rs 6,868 crore for the year ended March 2012.
Net profit stood at Rs 6,011 crore in 2010-11 as compared to Rs 4,310 crore in the year-ago period.
While the turnover of the state-owned unit stood at Rs 49,301 crore in the last fiscal, the same was at Rs 43,337 crore in the previous fiscal. In 2009-10, the turnover touched Rs 34,050 crore.
Over the last three years, the company’s average net worth has been on the rise. The net worth of BHEL rose to Rs 24,947 crore in the last fiscal from Rs 20,154 crore in 2010-11. The same stood at Rs 15,917 crore in 2009-10 period.
In December 2009, the government had decided to provide more operational freedom for top-performing PSUs through the Maharatna scheme.
Presently, there are five Maharatna companies — Oil and Natural Gas Corp, Indian Oil, SAIL, NTPC and CIL.
BHEL SUBSIDIARY BHPV POSTS 16 RISE IN TURNOVER IN FY12
VISAKHAPATNAM: Bharat Heavy Plates and Vessels Ltd (BHPV), a subsidiary of state-run power equipment maker BHEL, has recorded a turnover of Rs 158.35 crore during 2011-12, an increase of 15.6 per cent over Rs 136.97 crore posted during the last fiscal.
The profit after tax (PAT) was Rs 9.03 crore as against Rs 8.77 crore during 2010-11, BHPV Managing Director A S Nagaraja said in a statement here.
The Rs 235-crore modernisation scheme at BHPV, funded by BHEL, was firmly on track and this would help in achieving sustained growth and profitability in the years to come, he said.
BHEL EASTERN REGION TURNOVER RISES 24 PER CENT IN FY12
KOLKATA: Turnover of eastern region of heavy engineering public-sector unit BHEL increased 24 per cent at Rs 2,700 crore during the financial year 2011-12, a company official said.
“The eastern region of BHEL achieved a turnover of Rs 2,700 crore in 2011-12 against Rs 2,174 crore in the previous fiscal”, executive director of BHEL, eastern region, Rajiv Kumar said.
Gross profit from the region increased 29 per cent in 2011-12 at Rs 157.87 crore compared to Rs 122.15 crore in the previous fiscal, he told reporters here yesterday.
In the next financial year, the targeted turnover is Rs 3,100 crore and gross profit is pegged at Rs 374 crore, Kumar said.
He added in the eastern region, 17,000 MW of capacity addition is under execution in various stages.
During 2011-12, BHEL eastern region had added 2,838 MW of capacity addition, the highest ever, he said.
The cumulative order position in the eastern region of BHEL in 2012-13 and beyond stood at Rs 7,153 crore.
BHEL eastern region was involved in setting up power plants abroad, he said.