BHEL Bhopal expects rise in profits with new coal block policy

Coal block scam has not only affected the Bharat Heavy Electricals Limited (BHEL) Bhopal unit in the last two years, its profit margin has also reduced substantially.

Updated on: Mar 12, 2015, 17:37:21 IST

Hindustan Times | By Shruti Tomar, Bhopal

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Coal block scam has not only affected the Bharat Heavy Electricals Limited (BHEL) Bhopal unit in the last two years, its profit margin has also reduced substantially.

But with the new coal block allocation policy, the situation could be stabilised in the coming years, said its executive director AMV Yugandhar.

Yugandhar told HT, “After coal block scam disclosure, the recession set in the power sector. BHEL’s Bhopal unit, which manufactured equipment for thermal power station, is facing a tough time. After the formation of the new government, we are optimistic towards an increase in profit in the next two-three years as the process of allocation of coal has been regularised by the government. The process has also started and it would improve the condition of the power sector.”

He said with the Foreign Direct Investment (FDI) cap increased to 49% from 25% in the defence sector, there are more opportunities of foreign inflows in BHEL.

Yugandhar said, “The Central government has raised the FDI cap in defence. We also want to manufacture equipment for the sector. It’s a good opportunity for BHEL to enter the defence sector by collaborating with foreign companies.”

The entry of Japanese and Chinese companies in the market has also raised concern for BHEL.

With rise in competition in the market, BHEL has brought about several changes in the services while dealing with an adverse situation.

"Quality-wise, BHEL products lead the market but at the same time BHEL units are also working on timely delivery and cost effective equipment," Yugandhar said.

ABOUT THE AUTHOR
Shruti Tomar
I have spent over a decade chronicling Madhya Pradesh’s political and social landscape, covering politics, investigative journalism, crime, human interest, and government policy, blending sharp insight with ground‑level depth. I have closely tracked three assembly elections, three Lok Sabha elections, leadership transitions in MP while exposing governance lapses, tender irregularities, and flawed policy rollouts. My reports have revealed gaps in the Cheetah project, irregularities in medical education, rigging in recruitment exams, and loopholes in policy implementation. In crime reporting, I have moved beyond FIRs to map systemic patterns — from organised crime networks and gender‑based violence to custodial accountability — balancing urgency with sensitivity. My journalism is defined by a commitment to human interest. I have profiled the marginalised Bancchda community, documented atrocities against tribal groups, and highlighted efforts to preserve their culture through heritage liquor and revival of spiritual practices. I have reported on farmers struggling with failed MSP promises, giving voice to those often reduced to statistics in policy files. Passionate about field reporting, I have reported on rampant sand mining in Chambal and Narmada, pharmaceutical companies supplying medicines under altered names, the dire condition of schools and colleges, the plight of commercial sex workers, and skewed sex ratios in specific districts. Beyond deadlines, and as HT’s state correspondent and assistant editor in Madhya Pradesh, I engage with ministers, farmers, students, and activists, believing the best policy stories begin with a single human voice. A postgraduate in Journalism and Mass Communication, I also hold a diploma in sports journalism.Read More

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