BHEL to merge units in Haridwar and Hyderabad from April 1

Bharat Heavy Electricals Limited (BHEL) has approved the consolidation of two pairs of manufacturing units in Haridwar and Hyderabad, with effect from April 1, 2026, as part of a restructuring of its heavy electrical and power equipment operations.

At its board meeting on March 19, BHEL cleared the merger of the Heavy Electrical Equipment Plant (HEEP) and the Central Foundry Forge Plant (CFFP) in Haridwar into a single unit, which will retain the HEEP name. In Hyderabad, the Heavy Power Equipment Plant (HPEP) and the Project Engineering and Systems Division (PE&SD) will be combined and operate under the HPEP name.

Operational restructuring and investment

The consolidation reduces the number of manufacturing units at both locations and is expected to streamline operations, lower administrative overhead, and improve coordination between related functions. BHEL has not provided further details on the operational rationale.

In the same meeting, the board approved an equity investment of Rs 3,064.46 crore in Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture with Coal India Limited (CIL). The investment will be made over four years. BCGCL, incorporated in May 2024, is developing a 2,000 tonnes per day Ammonium Nitrate plant based on coal gasification technology. BHEL holds a 49% stake in the venture, while CIL holds 51%.