Bhel may go off government's divestment target

State-run Bharat Heavy Electricals Ltd (Bhel) may no longer be a potential divestment target as the government considers categorising the maker of rail coaches to power generation equipment as a "strategic" public sector unit, according to two people close to the development.

- Manas Pimpalkhare Rituraj Baruah

"Now that a parliamentary committee has also recommended the tag of strategic PSU for the company, there would be further thought on this," said one of the two people cited above, requesting anonymity.

The move reflects the importance of Bhel, which will be crucial as India looks to bolster local production of industrial equipment across sectors, including renewable energy and defence. The company-having forayed into electric mobility, and nuclear and renewable power-has seen its fortunes revive with large thermal power and railway equipment orders.

While the government is not actively discussing disinvesting from the company, Bhel was among the first companies to be considered for stake sale. "Once categorized as strategic, it would be completely out of the stake sale considerations," said the second person quoted earlier.