Exclusive: BHEL to benefit from Modi Govt’s Make in India, Cluster Development Policy

State-run company BHEL's plans to monetise its land bank is in full swing and the company is likely to benefit from Modi Government’s Make in India and Cluster Development policy, Zee Business Executive Editor Swati Khandelwal told Managing Editor Anil Singhvi, in this breaking news.

The government is focusing on promoting the Make in India initiative and has instructed states to buy products of domestic companies, Khandelwal said, quoting sources. The government is also disincentivising the products’ import scheme, she said.

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PSU से जुड़ी एक्सक्लूसिव खबर...BHEL को नई मेक इन इंडिया और क्लस्टर डेवलपमेंट पॉलिसी से फायदा...

> सरकार का राज्यों को 'मेक इन इंडिया' प्रोडक्ट खरीदने का निर्देश
> क्लस्टर डेवलपमेंट के लिए BHEL करेगी लैंड बैंक का इस्तेमाल#ZBizExclusive #BHEL @AnilSinghvi_ @SwatiKJain pic.twitter.com/7kLfAvhwyP

— Zee Business (@ZeeBusiness) July 17, 2020

BHEL was established in 1964 and is one of India’s largest engineering and manufacturing company with business interests in power and infrastructure sectors. The company has a large land bank of about 14000 acres and is inviting Expression of Interests, she said. It has also been in talks with several international players, the Executive Editor added.

This land parcel will be used by BHEL for cluster development. Government has said that it will not allow any import of goods for procuring capital goods and manufacturing power equipment. BHEL is a strong player in this space, she added.

Now that, there will be import restrictions, BHEL is likely to gain. The PSU Company has been tying-up with international players with a cluster-based approach to manufacture critical components.

Most of the critical components which are currently being imported from China and other countries will now be made in India, she said. The government’s focus is quite clear on this and there may likely be a policy forthcoming on this going forward, Swati further said.

Today, BHEL share price was trading around Rs 38.20 on BSE, up by over 3 per cent from the previous close.

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Commenting on this development, and giving his analytical take and the immense scope of the news, Anil Singhvi said that there is even a possibility of re-rating of the company happening. The stock has seen some correction over the last few days and is now trading at right levels, he added.