New Delhi, May 10
State-run engineering major Bharat Heavy Electricals Limited (BHEL) announced on Saturday that the proposal for its upcoming joint venture with REC Power Development and Consultancy Ltd (RECPDCL) is currently under review by the Department of Investment and Public Asset Management (DIPAM).In March 2024, BHEL and RECPDCL, a wholly-owned subsidiary of REC Ltd, had signed a Memorandum of Understanding (MoU) to collaborate on the joint development of utility-scale renewable energy projects across India. The initiative aims to support India's ambitious clean energy goals through the establishment of a dedicated special purpose vehicle (SPV).
In a stock exchange filing, BHEL stated that the proposal is awaiting DIPAM’s approval, post which it will be re-submitted to the company’s board for incorporation of the joint venture company (JVC) along with necessary investment decisions. This will include a detailed feasibility report and due diligence.
The joint venture agreement (JVA) will be formalized only after obtaining all regulatory and internal approvals. BHEL confirmed that a disclosure in line with Regulation 30 of SEBI (LODR) Regulations, 2015 will be issued at the appropriate time.
This strategic partnership between two major public sector entities is expected to bolster India’s transition toward sustainable and clean energy sources.