BHEL In Negotiations To Purchase 10Pc In 2 State Power Projects

New Delhi: Power equipment manufacturer Bharat Heavy Electricals is in negotiations with Tamil Nadu and Maharashtra governments to establish power plants in a joint venture with state-owned utilities there. They are in negotiations to establish one project of two units of 800MW each in Tamil Nadu and two projects of 800 MW each in Maharashtra. BHEL proposes to buy around 10 per cent stake in the projects while the rest will be held by state utilities. In any power project, the debt-equity ratio is 70:30. They intend to take around 30 per cent of the 30 per cent equity portion, which comes to a share of around 10 per cent in the project. Supplying equipment in lieu of money ensured revenues and sustained market share for BHEL besides assuring completion of the project.