Bloomberg

Arijit Ghosh

December 01, 2000

Mumbai, Dec. 1 (Bloomberg) — Bharat Heavy Electricals Ltd., India’s biggest maker of equipment for power utilities, surged after the government said it will spend 340 billion rupees ($7.4 billion) over 12 years to upgrade power plants and reform the state-owned power industry.

“BHEL will be the biggest gainer,” said Sanjeev Joshi, an analyst with SG Securities Ltd., in Mumbai. “It could get some orders” for equipment such as turbines and generators.

Bharat Heavy shares, which have fallen 34 percent this year, rose as much as 10.25 rupees, or 8 percent, to 138.7 rupees. It was the stock’s biggest gain in almost a month.

The cabinet last night approved the Accelerated Power Development Program, under which the government will spend 10 billion rupees in the period ending March 31, 2001, and 30 billion rupees each year until March 2012, the government said.

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