Bharat Heavy Electricals Limited (BHEL), a major player in India's power sector, has taken legal action to enforce arbitration awards against Rajasthan Rajya Vidhyut Utpadan Nigam Ltd (RRVUNL). The company has filed execution petitions for three separate projects, seeking a total of ₹107.75 crore.

Details of the Execution Petitions

BHEL has filed execution petitions in the Commercial Court, Jaipur on October 9, 2025, for the following projects:

Background of the Dispute

The execution petitions are a result of arbitration awards that were ruled in favor of BHEL. These awards pertain to disputes arising from various power projects undertaken by BHEL for RRVUNL in Rajasthan.

Implications for BHEL

The enforcement of these arbitration awards, if successful, could significantly impact BHEL's financial position. The total claim amount of ₹107.75 crore represents a substantial sum that could boost the company's cash flow and potentially influence its future project undertakings.

Market Response

Investors and market analysts will likely be watching closely to see how these legal proceedings unfold. The outcome of these petitions could have implications not only for BHEL but also for the broader power sector in India, particularly regarding contract disputes and arbitration enforcement.

Conclusion

As the legal process moves forward, stakeholders will be keen to observe how quickly the Commercial Court in Jaipur addresses these petitions and whether RRVUNL contests the enforcement. The resolution of these disputes could set important precedents for similar cases in the power sector and influence future contract negotiations between power equipment manufacturers and state utilities.

BHEL's proactive approach in seeking enforcement of these arbitration awards demonstrates its commitment to protecting its financial interests and ensuring fair compensation for its services in the power sector.

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.