BHEL Approves ₹3,064 Crore Investment in Bharat Coal Gasification & Chemicals Limited

New Delhi, 19 March 2026: Bharat Heavy Electricals Limited (BHEL), a Government of India undertaking, has announced key decisions in its Board meeting held today, signaling major strategic investments and organizational restructuring.

Key Decisions Taken by BHEL Board

Equity Investment in BCGCL
- BHEL approved an equity investment of ₹3,064.46 crore over four years in Bharat Coal Gasification & Chemicals Limited (BCGCL), a joint venture with Coal India Limited.
- Shareholding: BHEL holds 49%, Coal India Limited holds 51%.
- Objective: BCGCL, incorporated on 21 May 2024, is focused on the coal-to-chemicals business, beginning with a coal-to-2000 TPD Ammonium Nitrate plant.
- The investment will be made in cash at face value and executed at arm’s length, ensuring transparency.
Joint Venture for Vande Bharat Sleeper Trains Maintenance
- The Board authorized BHEL to form a JV with Titagarh Rail Systems Limited for the comprehensive maintenance of Vande Bharat Sleeper Trains.
- The JV formation will proceed after obtaining clearance from DIPAM, following which the agreement will be finalized with necessary modifications.
Strategic Plant Mergers
- Haridwar: Heavy Electrical Equipment Plant (HEEP) and Central Foundry Forge Plant (CFFP) will merge into a single unit, retaining the name HEEP, effective 1 April 2026.
- Hyderabad: Heavy Power Equipment Plant (HPEP) and Project Engineering & Systems Division (PE&SD) will merge into HPEP, effective 1 April 2026.

Strategic Impact

The BCGCL investment positions BHEL at the forefront of coal-to-chemicals technology, strengthening its industrial diversification into chemical manufacturing.
The JV with Titagarh Rail Systems enhances BHEL’s involvement in the maintenance of Vande Bharat Sleeper Trains, aligning with India’s high-speed rail modernization.
Plant mergers are aimed at streamlining operations, improving efficiency, and optimizing resources in Haridwar and Hyderabad units.

About BHEL and BCGCL

BHEL: One of India’s largest engineering and manufacturing PSUs, BHEL operates across power, industrial, transportation, and renewable sectors.
BCGCL: Incorporated in 2024, this JV focuses on coal-to-chemicals, starting with a 2,000 TPD Ammonium Nitrate facility, contributing to India’s strategic energy and chemicals sector.

The Board meeting commenced at 1:11 PM and concluded at 2:40 PM.