Public sector firm Bharat Heavy Electricals is eyeing foreign acquisitions to expand and diversify its business. It would specially focus on areas such as transmission, transportation and nuclear power, targeting Europe and Soviet markets.

B. P. Rao, the Chairman of India's largest power-equipment maker firm, said, "Acquisitions used to be viewed to acquire intellectual property rights or to acquire a market. We're looking at opportunities for satisfying one of those needs." He refused to comment on the possible acquisition of Hungarian power plant parts maker by the state-owned firm.

Bharat Heavy Electricals, according to Mr. Rao, is in discussions with firms like Areva, Toshiba and Westinghouse Electric for nuclear technology. The company already has had a Joint Venture with General Electric and Hitachi, and is making optimum use of their respective expertise. The firm, with total order book of 1.25 trillion rupees, may also join GE-Hitachi to bid for supplying engines to the Indian Railway.

Shares of the public sector firm fell 1 per cent to 2,460 rupees on the Bombay Stock Exchange.