Bharat Heavy Electricals Ltd (BHEL) informed in its board meeting on September 25, 2025, that the Department of Investment and Public Asset Management (DIPAM) has not approved the proposed joint venture (JV) between BHEL and REC Power Development and Consultancy Limited (RECPDCL). This update follows BHEL's earlier clarification dated May 10, 2025, when the JV proposal was still awaiting DIPAM's approval.
Key Developments on the JV Proposal
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The JV was intended to combine BHEL’s engineering expertise with REC’s infrastructure investment capabilities to develop utility-scale renewable energy projects across India.
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Initially, the JV aimed to target an installed capacity of 1 gigawatt (GW) focusing primarily on the commercial and industrial (C&I) energy segments.
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Both companies had signed a Memorandum of Understanding (MoU) in March 2024 to pursue this clean energy initiative.
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The REC board had approved the JV proposal on May 8, 2025, while consummation was contingent on DIPAM’s nod and subsequent approval by BHEL's board.
Significance of DIPAM’s Decision
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DIPAM’s rejection means BHEL cannot proceed to form the special purpose vehicle (SPV) for scaling renewable energy projects with RECPDCL.
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BHEL will likely need to explore alternative strategies to contribute to India’s clean energy goals, possibly revising its partnerships or project scope.
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This development highlights challenges faced by state-run enterprises in navigating regulatory and investment approvals for strategic expansions in the renewable sector.
Source: BHEL’s regulatory announcement, CNBC-TV18, PSU Watch