BHEL to enter into Financial services sector

New Delhi: Bharat Heavy Electricals Ltd's plans to set up a financing arm in the form of a non-banking finance company through a joint venture with a financial sector partner.

Through the arm, BHEL plans to leverage its balance sheet and reserves to expand its role beyond equipment supplies and enter the financial services sector.

Plans include offering financing options to customers that place equipment orders with the firm, which had reserves of Rs 15,400 crore at end-March 2010. The immediate mandate would be restricted to addressing project financing requirements of the firm's customers.

The proposal for a dedicated financing arm hopes to build on a move initiated by BHEL to pick up minority stakes in generation projects, especially those being set up by State-sector power utilities, where it is assured of equipment deals.