BHEL is the largest engineering and manufacturing enterprise in India in the energy-related/infrastructure sector, today. BHEL was established more than 40 years ago, ushering in the indigenous Heavy Electrical Equipment industry in India - a dream that has been more than realized with a well-recognized track record of performance. The company has been earning profits continuously since 1971-72 and paying dividends since 1976-77.

BHEL business in the field of power generation equipment, which is handled by the Power Group, covers all the services related to power projects from concept to commissioning in keeping with the corporate aim of developing BHEL into a World Class Organization. This aim guided the formation of PEM.

In 1974, BHEL set up its engineering consultancy wing under the name Consultancy Services Division (CSD) to address the market demand for turnkey services in power and related areas. In 1977, CSD was re-christened as Projects Engineering Division (PED). Since 1984, it has been known as Project Engineering Management (PEM).