THIRUVANANTHAPURAM: Aiming to milk the rapidly expanding electric vehicles’(EV) market for all its worth, the state government is pressing ahead with the proposed move to take over the BHEL Electrical Machines Ltd (BHEL EML), Kasargod, a BHEL-Kerala Government joint venture (JV).
The move coincides with the growing popularity of electric cars on account of their zero emissions as well as the competitive running cost. The public sector Restructuring and Internal Audit Board (RIAB) has submitted a proposal to the state government to take over the sick PSU - BHEL - EML is a leading player in the field of Rotating Electrical Machinery, catering to various sectors including the Railways - after the Centre decided to disinvest the PSU.
Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors approved the transfer of BHEL’s 51 per cent stake in BHEL Electrical Machines Ltd to the state government.
‘Nod expected soon’
RIAB chairman M P Sukumaran Nair told Express a formal proposal has been submitted to the government for the takeover of the PSU after asset valuation and the government nod is expected soon.
The state government is also planning to manufacture traction motors and control devices used in the electric vehicles at the BHEL - EML’s Kasargod plant, he said. Over the years, the sick PSU had incurred cumulative losses to the tune of Rs 18.7 crore.
The PSU suffered around Rs 6 crore in the last fiscal despite the Railways and Ministry of Defence figuring among its clients. The company ’s product line includes brushless alternators, train lighting alternators, traction machines, induction motors and diesel generator sets.
It was during A K Antony’s tenure as Defence Minister the process of starting JVs involving Central and state PSUs on the lines of the NTPC-TELK and SAIL- Kerala Steel Complex gained traction.
Accordingly, BHEL-EML was incorporated in 2011, by acquiring the Kasargod unit of KEL, a state PSU, as a joint venture with the Government of Kerala.
But in 2017, the state government allowed BHEL to exit the loss-making JV after the latter made known its unwillingness to make any further investments as per the agreement. Besides, the BHEL wanted to exit the joint venture. The company with around 165 employees now has been a loss-making enterprise ever since its launch.
The Cabinet had the other day given permission to take over Instrumentation Ltd, Palakkad, a Central PSE. The state government is taking over the company after estimating an asset value of Rs 53 crore for the PSU and the RIAB has been entrusted with the task of completing the formalities.
BHEL-Electrical Machines Ltd
BHEL-Electrical Machines Ltd, Kasargod, is a Central Public Sector Enterprise and a subsidiary of BHEL, a Maharatna company.
The Kerala Government has allowed BHEL to exit the joint venture (JV) with state-run Electrical Machines Ltd in Kasargod.
BHEL-EML was incorporated in 2011 by acquiring the Kasargod unit of KEL, a state PSU, as a joint venture with the state government.
BHEL had 51 pc equity in the JV and the Kerala Government holds 49 percent stake.