BHEL’s Renewable Energy JV with REC Power Development Not Approved by DIPAM

26 Sep 2025 , 01:34 PM

Bharat Heavy Electricals Limited (BHEL) on Thursday informed that its board has taken note of DIPAM’s decision not to approve the proposed joint venture with REC Power Development and Consultancy Limited (RECPDCL).

The issue was discussed in the board meeting held on September 25, 2025, following up on BHEL’s earlier clarification from May 10, 2025. Back in March 2024, BHEL and RECPDCL, a fully-owned subsidiary of REC Ltd had signed a memorandum of understanding (MoU) to explore joint development of large-scale renewable energy projects across India.

The plan had envisioned creating a special purpose vehicle (SPV) to contribute toward the country’s clean energy goals, but the proposal did not receive regulatory clearance. Separately, BHEL has secured a ₹22.87 crore order, including GST, from the South Western Railway division of Indian Railways.

The Letter of Intent, issued on September 11, 2025, covers the design, development, supply, installation, trial, and commissioning of On-board KAVACH equipment for locomotives, as well as trackside KAVACH systems at stations, level crossings, interlocking cabins, and automatic block signalling points.

These developments highlight BHEL’s continuing role in strategic infrastructure projects, both in the renewable energy sector and in enhancing railway safety technologies.

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