Bharat Heavy Electricals Limited (BHEL), India's state-owned engineering giant, has secured a significant contract in the power generation sector, marking a major milestone for the company. The engineering firm has accepted a Letter of Intent (LOI) from MB Power (Madhya Pradesh) Limited for an 800 MW power project, valued at approximately Rs 2,600.00 crore, excluding GST.

Contract Details

The contract involves the supply of critical equipment for the 1x800 MW Anuppur Thermal Power Project in Madhya Pradesh. BHEL will provide the following key components:

• Boiler
• Turbine
• Generator
• Associated auxiliaries
• Control and instrumentation systems

The power project will be based on supercritical technology, representing a step towards more efficient and environmentally friendly power generation.

Manufacturing and Execution

BHEL has confirmed that the manufacturing of the core components will be carried out at its specialized facilities:

• The boiler will be manufactured at BHEL's Trichy plant
• The turbine generator will be produced at the Haridwar plant

The company has been given a supply completion schedule of 58 months, highlighting the long-term nature and complexity of the project.

Strategic Importance

This contract win is particularly significant for BHEL as it reinforces the company's position as a leading player in India's power sector. The project aligns with India's growing energy needs and the push towards more advanced power generation technologies.

Financial Impact

The order value of approximately Rs 2,600.00 crore (excluding GST) represents a substantial addition to BHEL's order book. This contract is expected to have a positive impact on the company's financial performance in the coming years, given the project's size and duration.

Market Response

The news of this contract win is likely to be well-received by investors and market analysts, as it demonstrates BHEL's continued competitiveness in securing large-scale power projects. The company's ability to win such significant orders could potentially boost investor confidence in its long-term growth prospects.

As BHEL moves forward with this project, the power sector will be watching closely to see how efficiently the company delivers on this substantial contract, which could pave the way for more such opportunities in the future.

Bharat Heavy Electricals Limited (BHEL), a leading engineering and manufacturing company, has secured a significant legal victory against a substantial tax demand. The company recently received a favorable order from the Commissioner CGST(Appeal) in Dehradun, effectively quashing a ₹31.2 crore CGST demand.

Key Highlights of the Appellate Order

• The Commissioner CGST(Appeal) in Dehradun ruled in favor of BHEL, eliminating the tax liability of ₹31.2 crore.
• The order quashed the Departmental Appeal filed against the decision of the Joint Commissioner.
• The original Show Cause Notice (SCN) dated 26.12.2023, issued under Section 73 of the CGST Act 2017, has been dropped.
• The tax demand pertained to the financial years 2018-19 and 2020-21.

Implications for BHEL

BHEL's management has stated that this favorable ruling will have no impact on the company's financials or operations. The order effectively removes a significant potential liability from the company's books, providing clarity and stability to its financial position.

Legal and Compliance Aspects

• The appellate authority found no aberrations or non-compliances in BHEL's conduct.
• No penalties, restrictions, or sanctions were imposed on the company.
• BHEL has accepted the favorable order, and no further action is required from the company's side.

This victory for BHEL underscores the importance of robust legal and compliance frameworks in navigating complex tax matters. It also highlights the company's commitment to addressing regulatory challenges effectively.

Additional Corporate Update

In a separate development, BHEL has announced the dissolution of its joint venture company, M/s Powerplant Performance Improvement Pvt. Ltd. (PPIL). The National Company Law Tribunal (NCLT), New Delhi Bench, has ordered the dissolution of PPIL, which was a joint venture between BHEL and Siemens AG Germany. The dissolution is effective from August 29, 2025, as per the NCLT order received by BHEL on September 1, 2025.

As BHEL continues to navigate its business landscape, these recent developments demonstrate the company's active management of both tax liabilities and corporate structures, potentially streamlining operations and reducing financial uncertainties.