**BHEL Intensifies Efforts to Recover ₹1,500 Crore in Arbitral Awards**
Bharat Heavy Electricals Ltd (BHEL), a state-run industrial equipment manufacturer, is making significant efforts to recover arbitral awards totaling nearly ₹1,500 crore, which is approximately 15 times the company’s net profit for the September quarter. According to sources familiar with the situation, BHEL is prioritizing the collection of these awards, which have been delayed due to various legal challenges and appeals.
The majority of these awards, accumulated between 2018 and 2022, have faced payment delays. Some were affected by the liquidation of the parties responsible for payment, while others are entangled in enforcement proceedings in the courts. Notably, BHEL secured an arbitral award exceeding ₹830 crore in 2018, but the payer’s liquidation has complicated recovery efforts, leading to ongoing legal disputes that have reached the Supreme Court. Additionally, a 2019 case involving an award of over ₹223 crore remains unresolved in the Karnataka High Court due to challenges from the payer.
An official, speaking anonymously, stated, “There is constant oversight on this issue, and all developments related to these matters are being monitored. All possible methods are being used to recover these dues.” The recovery of these funds is crucial for BHEL, which has recently experienced a turnaround driven by increased demand for boilers and railway equipment. The company received orders worth nearly ₹78,000 crore in the 2023-24 fiscal year, marking a significant increase from previous years.
In the September quarter of 2024-25, BHEL reported a net profit of over ₹96 crore, a notable improvement from a loss of over ₹200 crore in the same period the previous year. The government holds approximately 63.17% of BHEL, with the public owning the remaining 36.83%.
Recent reports suggest that BHEL may be removed from the government’s disinvestment list and could be granted “strategic PSU” status following recommendations from a parliamentary committee. The Committee on Public Undertakings highlighted BHEL’s substantial receivables from arbitral disputes and urged the company to expedite their resolution, emphasizing that delayed arbitral awards are a significant concern.
