BHEL Secures ₹11,000 Crore Contract for 3 Supercritical Power Projects

On August 26, 2024, Bharat Heavy Electricals Limited (BHEL) informed the stock exchanges about the signing of a significant contract agreement with Adani Power Ltd and its subsidiary, Mahan Energen Ltd. The agreement is for the establishment of three Supercritical Thermal Power projects. Each project will have a capacity of 2×800 MW and will be located in Kawai, Rajasthan, and Mahan, Madhya Pradesh.

The contract, finalised on August 25, 2024, involves the supply of critical equipment, including boilers, turbines, and generators, as well as the supervision of their erection and commissioning. The projects are based on advanced Supercritical Technology, designed to enhance efficiency and reduce environmental impact.

The orders are exclusively from domestic entities, marking a major milestone in India’s power sector development. BHEL will deliver equipment and oversee the installation and commissioning processes for three power projects: Kawai Phase-II and Kawai Phase-III in Rajasthan and Mahan Phase-III in Madhya Pradesh.

The execution timeline for these projects spans 49 months for Kawai Phase II, 52 months for Kawai Phase III, and 55 months for Mahan Phase III. This comprehensive schedule ensures that the projects will be completed in a phased manner, allowing for meticulous planning and implementation.

The company stated that the total value of these contracts is more than ₹11,000 crore, excluding GST, reflecting the scale and significance of this venture. This substantial contract underscores BHEL’s ongoing commitment to enhancing power generation capabilities and supporting India’s energy infrastructure development.

This collaboration with Adani Power and Mahan Energen aligns with BHEL’s strategic objectives to contribute to the nation’s energy sector growth while leveraging its expertise in advanced power technology.

On August 26, 2024, the share price of Bharat Heavy Electricals Ltd opened at ₹297.75, touching the day’s high at ₹304.00, as of 11:09 AM on the NSE.

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