Bharat Heavy Electricals Limited (BHEL), a leading power equipment manufacturer, has clinched two significant thermal power plant projects in Madhya Pradesh, marking a substantial boost to its order book. The company received Notifications of Award from M.P. Power Generating Company Ltd. (MPPGCL) for Engineering, Procurement, and Construction (EPC) packages valued between Rs 13,000.00 crore and Rs 15,000.00 crore, excluding taxes and duties.

Project Details

The contracts, awarded through an open tender enquiry process, encompass two state-of-the-art supercritical thermal power plants:

1. 1x660 MW Amarkantak Unit no. 6
2. 1x660 MW Satpura Unit no. 12

Both projects are located in Madhya Pradesh and represent a significant expansion of the state's power generation capacity.

Scope of Work

BHEL's responsibilities under these contracts are comprehensive, including:

• Supply of equipment
• Erection and commissioning
• Civil works

This end-to-end involvement underscores BHEL's capabilities in delivering turnkey power plant solutions.

Project Timeline

According to the LODR filing, each plant must be completed within 57 months from the date of the award notification. The Notifications of Award were received on September 29, setting a challenging but achievable timeline for BHEL to demonstrate its project execution prowess.

Financial Implications

The combined contract value, ranging between Rs 13,000.00 crore to Rs 15,000.00 crore (excluding taxes and duties), represents a significant addition to BHEL's order book. This substantial win is likely to have a positive impact on the company's financial outlook for the coming years.

Strategic Importance

These contracts underscore BHEL's strong position in the domestic power equipment market and its ability to secure large-scale projects in a competitive bidding environment. The projects also align with India's ongoing efforts to enhance its power generation capacity using advanced supercritical technology, which offers higher efficiency and lower emissions compared to conventional thermal power plants.

Conclusion

The award of these contracts to BHEL by MPPGCL not only strengthens the company's order book but also reaffirms its technological capabilities in the power sector. As BHEL moves forward with these projects, the power generation landscape in Madhya Pradesh is set for a significant upgrade, potentially contributing to the state's industrial and economic growth in the coming years.

Bharat Heavy Electricals Limited (BHEL), a leading public sector engineering and manufacturing company, faced a setback in its expansion plans while simultaneously securing a new order from Indian Railways. The company's stock closed at ₹234.60 on the BSE, down by ₹1.45 or 0.61%.

Joint Venture Proposal Rejected

During a board meeting, BHEL's directors acknowledged that the Department of Investment and Public Asset Management (DIPAM) did not approve the proposed joint venture between BHEL and REC Power Development and Consultancy Limited.

The company secretary, Dr. Yogesh R Chhabra, in a regulatory filing, stated:

"The Board of Directors of BHEL in its Meeting held today has noted that DIPAM has not agreed to the proposal for formation of a Joint Venture between BHEL and REC Power Development and Consultancy Limited."

New Railway Order Secured

In a separate development, BHEL has won a significant order worth ₹22.87 crore from the South Western Railway division of Indian Railways. The contract involves the design, supply, and installation of KAVACH equipment, a crucial safety system for railways.

Key Points of the Railway Order:

This order reinforces BHEL's position in the railway sector and showcases its capabilities in manufacturing advanced safety equipment for India's expansive rail network.

Management Changes

In addition to these developments, BHEL announced changes in its senior management:

1. Shri V Shrinivas Rao has been appointed as General Manager & Head (HBG), PS-BG II, Noida, reporting to the Director (Power).
2. Shri Ajay Kumar has been appointed as General Manager & Head (PEM & CPC), Noida, also reporting to the Director (Power).

These appointments are effective immediately and come following the superannuation of two executive directors.

As BHEL navigates through these corporate developments and new opportunities, investors and industry watchers will be keen to see how the company adapts its strategy in light of the joint venture setback and leverages its strengths in the power and railway sectors.