Bharat Heavy Electricals Limited (BHEL) has approved an equity investment of ₹3,064.46 crore in its joint venture company Bharat Coal Gasification and Chemicals Limited (BCGCL), along with key strategic decisions including formation of a new joint venture with Titagarh Rail Systems Limited for maintenance of Vande Bharat sleeper trains and restructuring of manufacturing units, the company said after its Board meeting held on Thursday.
The Board approved BHEL’s equity contribution in BCGCL, a joint venture with Coal India Limited, where BHEL holds 49% stake and Coal India holds 51%. The investment will be made over a period of four years and will be used for development of coal-to-chemicals business, including setting up a 2000 TPD ammonium nitrate plant. The investment will be made in cash at face value and is being executed at arm’s length between the promoter companies.
In another major decision, the Board approved signing of a joint venture agreement with Titagarh Rail Systems Limited for comprehensive maintenance of Vande Bharat sleeper trains supplied under the contract. The agreement will be finalized after obtaining clearance from the Department of Investment and Public Asset Management (DIPAM), after which detailed disclosures will be made.
The Board also cleared internal restructuring of manufacturing units to improve operational efficiency. The Heavy Electrical Equipment Plant (HEEP), Haridwar and Central Foundry Forge Plant (CFFP), Haridwar will be merged into a single unit to be known as HEEP from April 1, 2026. Similarly, Heavy Power Equipment Plant (HPEP), Hyderabad and Project Engineering & Systems Division (PE&SD), Hyderabad will be merged into one unit under the name HPEP from the same date.
