State-run BHEL is exploring the possibility of formation of a separate finance company as a joint venture with a strategic partner to finance power projects.
"We have floated an expression of interest for consultation for appointment of a consultant to work on ideas to use our cash reserves," CMD BHEL B P Rao said. "We would appoint a consultant which would advise us on such issues like leveraging our resources to increase our exposure in the power sector, we may pick up minority stake ... 26 per cent (stake) in the power projects," Rao said.
"We may go for a separate investment arm for BHEL for funding power sector projects ... lets see what works out," he said adding that the NBFC can target the opportunities in overseas markets also," he added.
BHEL floated the tender for appointment of the consultant a couple of days and is likely to do the appointment in a month from now. "We may finalise the consultant in a month," he added.
BHEL is currently engaged in manufacturing power equipment, transportation and auto components.
At present, the company manufactures equipment that can generate 15,000 MW of electricity and is planning to augment this capacity to 20,000 MW by March, 2012.
