Bharat Heavy Electricals Limited (BHEL) has announced the receipt of a Letter of Acceptance from Bharat Coal Gasification and Chemicals Limited (BCGCL) for a major Syngas Purification Plant project. The contract, valued at approximately ₹2800 crores excluding custom duty and GST, was awarded on February 10, 2026, marking a significant milestone for the state-owned engineering company.

Project Overview

The contract pertains to the LSTK 2 Package of BCGCL's Coal to 2000 TPD Ammonium Nitrate Project, strategically located at Lakhanpur in Jharsuguda District, Odisha. This domestic tender was awarded on a nomination basis, highlighting BHEL's specialized capabilities in coal gasification technology.

Scope of Work

The comprehensive contract encompasses multiple phases of project execution. BHEL will be responsible for design and engineering of the syngas purification system, supply of all required equipment, civil construction works, erection and commissioning of the plant, and operations & maintenance services.

Timeline and Execution

The project follows a structured timeline with specific milestones. Preliminary Acceptance, including commissioning and performance guarantee tests, is scheduled for completion within 42 months from the date of Letter of Acceptance. Additionally, BHEL will provide operations and maintenance services for 60 months following preliminary acceptance.

Corporate Structure

BCGCL operates as a joint venture company with Coal India Limited holding a 51% stake and BHEL maintaining a 49% ownership interest. This partnership structure positions BHEL as both a promoter company and the executing agency for the Syngas Purification Plant contract. The transaction qualifies as a related party transaction, conducted at arm's length in accordance with regulatory requirements.

Strategic Significance

This contract reinforces BHEL's position in the coal gasification and chemical processing sector. The project contributes to India's domestic manufacturing capabilities in chemical production, specifically targeting ammonium nitrate production from coal gasification processes. The Lakhanpur facility represents a significant investment in Odisha's industrial infrastructure, supporting regional economic development and employment generation.

Bharat Heavy Electricals Ltd has announced securing a major contract from Hindalco Industries, valued at approximately ₹1200-1500 crores. The contract involves supplying a comprehensive 2 X 150 MW BTG (Boiler, Turbine, Generator) package, representing a significant addition to the company's order book.

Contract Details

The agreement encompasses the supply of critical power generation equipment with a total capacity of 300 MW across two units. The BTG package includes essential components for power plant operations, demonstrating BHEL's capabilities in delivering complete power generation solutions.

Project Timeline and Execution

The project is scheduled for completion within 35 to 37 months from the contract commencement. This timeline reflects the comprehensive nature of the BTG package supply, which involves manufacturing, testing, and delivery of sophisticated power generation equipment.

Strategic Significance

This contract award strengthens BHEL's position in the power equipment manufacturing sector and adds substantial value to its order portfolio. The partnership with Hindalco Industries, a leading aluminum and copper manufacturer, highlights the ongoing demand for reliable power generation solutions in the industrial sector.

The BTG package contract represents BHEL's continued focus on delivering integrated power solutions to major industrial clients across India.