Bharat Heavy Electricals Ltd (BHEL) has sanctioned a Rs 65 crore equity investment into NTPC BHEL Power Projects (NBPPL). This 50:50 joint venture with NTPC will use the funds to settle immediate liabilities and keep the entity operational. Investors are observing this move closely as the joint venture has reported a steady decline in its annual turnover over the past three fiscal years.
The Board of Directors of Bharat Heavy Electricals Ltd (BHEL) has authorized a fresh capital infusion of Rs 65 crore into its joint venture, NTPC BHEL Power Projects Private Limited (NBPPL). This investment will be made in one or more tranches, as part of an agreement to maintain the 50:50 shareholding structure between BHEL and NTPC Ltd.
The primary objective of this funding is to settle urgent liabilities and ensure that NBPPL remains operational. While the joint venture was originally established in 2008 to handle power plant construction and equipment manufacturing, its financial health has weakened in recent times.
For shareholders and investors, the key concern is the entity’s shrinking business volume. Provisional figures for the 2025-26 fiscal year show a turnover of just Rs 1.04 crore. This is a significant drop from the Rs 3.48 crore recorded in the 2024-25 fiscal year and Rs 18.19 crore in 2023-24. This consistent contraction highlights the challenges the joint venture has faced in securing and executing new project contracts.
Despite the declining financial performance, the promoters, BHEL and NTPC, have chosen to support the entity rather than let its operations cease. By providing this capital at face value, the parent companies aim to resolve immediate debt pressures and keep the company as a going concern.
Moving forward, the important factor for investors is whether NBPPL can reverse this downward trend in turnover. With the power sector currently seeing significant infrastructure activity, the ability of the joint venture to win new orders will determine if this capital injection is a one-time relief or if the entity will require further support in the future.