Bharat Heavy Electricals Limited (BHEL) has secured a major infrastructure contract from Steel Authority of India Limited (SAIL), marking a significant milestone in the power generation sector. The Letter of Acceptance was received on 17th February 2026 for a captive power plant project valued between Rs 1200-1500 crore excluding GST.

Project Overview

The contract encompasses the captive power plant package for SAIL's 4.08 MTPA CS expansion at the IISCO Steel Plant in Burnpur. This comprehensive project involves multiple phases of execution on a turnkey basis, excluding civil work.

Scope of Work

The project scope covers a comprehensive range of services and deliverables:

• Design and engineering of the captive power plant
• Manufacturing and supply of equipment
• Transportation, unloading, and storage management
• Erection and commissioning services
• Performance guarantee testing

The turnkey nature of the contract positions BHEL as the single-point responsibility provider for the entire power plant package, demonstrating the company's integrated capabilities in power generation solutions.

Contract Details

The agreement represents a domestic contract awarded through a competitive global tender process. The 39-month execution timeline from the effective contract date provides a structured framework for project delivery. BHEL confirmed that this contract does not involve any related party transactions and that promoter groups have no interest in the awarding entity.

Strategic Significance

This contract reinforces BHEL's position in the captive power plant segment, particularly in supporting India's steel industry expansion. The project aligns with SAIL's capacity enhancement initiatives at the IISCO Steel Plant, contributing to the country's steel production capabilities. The significant contract value places this among BHEL's major order wins, strengthening its order book and revenue pipeline.

Bharat Heavy Electricals Limited has filed mandatory regulatory disclosures following the Government of India's successful offer for sale of equity shares conducted on February 11-12, 2026. The company has submitted both the regulatory report under SEBI Takeover Regulations and insider trading disclosure under SEBI Insider Trading Regulations.

Government Stake Reduction Details

The Ministry of Heavy Industries, acting on behalf of the President of India as the promoter, successfully sold equity shares through the stock exchange mechanism. The transaction details are presented below:

Shareholding Pattern Changes

The offer for sale has resulted in a significant change in the government's shareholding pattern in BHEL:

Regulatory Compliance and Filings

BHEL has maintained strict adherence to regulatory requirements by filing multiple mandatory disclosures. The company filed the regulatory report under Regulation 29(2) of the SEBI Takeover Regulations and subsequently submitted the insider trading disclosure under Regulation 7(2) of the SEBI Insider Trading Regulations on February 13, 2026.

Dr. Yogesh R Chhabra, Company Secretary of BHEL, submitted the insider trading disclosure in Form B, which detailed the promoter's transaction in the company's securities. The disclosure was signed by Swaminathan Nagarajan, Under Secretary at the Ministry of Heavy Industries, Government of India.

Transaction Structure and Guidelines

The offer for sale was conducted in accordance with comprehensive regulatory frameworks including:

• SEBI Master Circular on comprehensive OFS guidelines (SEBI/HO/MRDPoD2/CIR/P/2024/00181 dated December 30, 2024)
• BSE's "Revised Operational Guidelines for Offer for Sale (OFS) Segment" (Notice 20240701-19 dated July 1, 2024)
• NSE's "Revised operating guidelines of Offer for Sale" (Circular 93/2024 dated July 12, 2024)

As part of the overall transaction structure, 87,05,158 equity shares representing 0.25% of the total issued and paid-up equity share capital were offered to eligible employees of the company through the stock exchange mechanism, subject to approval from the competent authority.

Regulatory Timeline

The transaction followed a structured timeline with proper regulatory notifications:

The comprehensive filing demonstrates BHEL's commitment to maintaining transparency and regulatory compliance throughout the government divestment process.