BHEL to Invest ₹3,064 Crore in Coal-to-Chemicals Joint Venture, Expands Rail Maintenance Operations
New Delhi, March 19 – Engineering major Bharat Heavy Electricals Limited (BHEL) announced on Thursday plans to invest up to ₹3,064.46 crore as equity in Bharat Coal Gasification and Chemicals Ltd. (BCGCL), a joint venture with Coal India Limited, according to an official exchange filing.BHEL’s equity infusion will be implemented over a four-year period, with BHEL holding a 49 per cent stake and Coal India 51 per cent. The joint venture aims to establish a coal-to-ammonium nitrate plant with a production capacity of 2,000 tonnes per day, marking a strategic entry into the chemicals sector.
The filing also highlighted that BHEL’s board approved the creation of a separate joint venture with Titagarh Rail Systems Limited. This new venture will focus on the comprehensive maintenance of Vande Bharat sleeper trains supplied by BHEL. “Once DIPAM grants approval, the joint venture agreement will be finalized, incorporating any required modifications,” the company said.
Following the announcements, BHEL shares declined 2.75 per cent to ₹253 on the National Stock Exchange, closing the week down more than 4.60 per cent. Year-to-date, the stock has fallen 13.19 per cent, although it has gained 23 per cent over the past 12 months.
In February, the government launched an Offer for Sale (OFS) to divest up to 5 per cent of its stake in BHEL, with an initial 3 per cent stake on sale and an option to offload an additional 2 per cent in case of oversubscription. The floor price for the OFS has been set at ₹254 per share.
BHEL also reported strong quarterly results for Q3 FY26 (October–December), with standalone net profit surging nearly three-fold to ₹382.49 crore from ₹124.77 crore in the same period last year. Revenue from operations rose 16.4 per cent year-on-year to ₹8,473.10 crore, driven by steady execution in the power and industrial segments. The company maintained sequential momentum over Q2 FY26, reflecting improving operating leverage.
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