Final Dividend for 2004-05.

PURSUANT TO CLAUSE 20 OF THE LISTING AGREEMENT, THIS IS TO INFORM THAT THE BOARD OF DIRECTORS OF BHARAT HEAVY ELECTRICALS LIMITED (BHEL) IN ITS 378th MEETING HELD ON 31st MAY, 2005 HAS RECOMMENDED FINAL DIVIDEND @ 80% ON PAID UP SHARE CAPITAL OF THE COMPANY (INCLUDING INTERIM DIVIDEND @ 35% ALREADY PAID) FOR THE FINANCIAL YEAR 2004-2005 (.)

NK Sinha

Company Secretary