The Kerala government has allowed Bharat Heavy Electricals Limited (BHEL) to ease out its loss-making joint venture (JV) with state-run Electrical Machines (EML) at Kasaragod. BHEL-EML was incorporated in 2011, by acquiring the Kasaragod unit of KEL, a State PSU, as a joint venture with the government of Kerala. BHEL had a 51% equity in the JV and the Kerala government holding stood at 49%. BHEL-Electrical Machines, Kasaragod, is a Central Public Sector Enterprise (CPSE) and a subsidiary of BHEL, a Maharatna company.
However, BHEL was unwilling to invest any amount as per the agreement, and also wrote to Kerala government saying that it wanted to exit the JV. A high-level meeting, chaired by chief minister Pinarayi Vijayan made the decision, in consultation with state industry minister AC Moideen, P Karunakaran MP and chief secretary Nalini Netto, says a CMO release.
The company has 174 employees on its rolls, says BHEL-Electical machines limited managing director S Basu.It was during AK Antony’s term as Union defence minister that he initiated forging of joint sector companies between Central PSUs and Kerala PSUs. There were similar MoUs between NTPC and Kerala’s TELK and between SAIL and Kerala Steel Complex.