BHEL MoU Amendment to Boost Flexibility in Forming Joint Ventures

Bharat Heavy Electricals Limited (BHEL), a Maharatna public sector company, has moved to update its Articles of Association to gain greater flexibility in creating joint ventures and subsidiaries. The company has issued a postal ballot notice to seek shareholder approval for these changes through a special resolution.

What Does the BHEL MoU Amendment Mean?

The main proposal is to revise Article 69, specifically clause 22, which currently restricts how much BHEL can invest in joint ventures and wholly owned subsidiaries. The old clause was written when BHEL held Navratna status, which came with tighter investment limits.

The new clause aims to give BHEL broader powers. If approved, the company will be able to establish joint ventures and subsidiaries in India and abroad, as well as divest its shareholding when needed. These actions will still have to follow government guidelines, but the removal of fixed financial caps provides more room for strategic decisions.

How Will The BHEL MoU Amendment Change the Old Clause? 

The existing clause limits investment to 15% of net worth per project with a maximum of ₹1,000 crore, and 30% of net worth across all projects. These restrictions will no longer apply under the proposed amendment.

The new clause also expands the scope from only financial joint ventures and wholly owned subsidiaries to all types of joint ventures and subsidiaries. In addition, it clearly includes the power to divest stake in these entities, which was not mentioned earlier.

Voting Schedule of BHEL MoU Amendment 

Shareholders can vote electronically between 19 November 2025 (9:00 AM IST) and 18 December 2025 (5:00 PM IST).

 The results will be announced on or before 20 December 2025.

 The voting will be scrutinised by Shri Sachin Agarwal, a practising Company Secretary.

Shareholders must ensure their email details are updated with the company or depositories to receive the postal ballot notice and participate in e-voting through NSDL.

Why Does The BHEL MoU Amendment Matter?

If the amendment is approved, BHEL could gain the agility needed to scale its operations in India and international markets. With more freedom to form partnerships and optimise its investments, the company may be better placed to act on new business opportunities.

BHEL share price performance over the years also shows strong long-term gains, with a 914.06% return over 5 years, reflecting steady investor confidence.

Read more: Tata Power Share Price in Focus; Commissions 300 MW Solar Project in Bikaner.

Conclusion

BHEL’s proposed amendment marks an important step in aligning its operational powers with its Maharatna status. The outcome of the postal ballot will determine how freely the company can expand through joint ventures and subsidiaries in the future.

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