BHEL has announced that the company has signed an agreement with NTPC Ltd for establishment and operation of Joint Venture Company for taking up EPC (Engineering, Procurement and Construction) business.

The step would help NTPC to enter into equipment manufacturing space. A Memorandum of Understanding (MoU) in this regard has been signed between the two companies in September this year.

The joint venture would carry out engineering, procurement and construction activities in the power sector.

BHEL a public sector undertaking, is the largest engineering and manufacturing enterprise in India in the energy-related/infrastructure sector while, NTPC is India's largest power producer with an operating capacity of 27,900 MW.

BHEL presently holds market cap worth Rs. 118721 crore, PE Ratio of 42.48; EPS of 57.09 and BV of 359.06. The firm had showed a net profit of Rs 718 crore for the quarter ended September 2007 as against Rs. 360 crore in same quarter of last year.

The stock of BHEL closed today at Rs. 2425 on NSE, down by 5% compared with previous close of Rs. 2561. It touched an intraday high of Rs. 2569 and low of Rs. 2406.