Bharat-Heavy Electricals Ltd (BHEL) has received a massive order worth over ₹6,650 crores from National Thermal Power Corporation Ltd. (NTPC), India’s largest power generation company. This marks a major boost for India’s power infrastructure.
As per Financial Express reports, this deal was successfully done on Thursday, November 6. BHEL would now set up a new 800-megawatt (MW) unit at the Darlipali Supercritical Thermal Power Project (STPP) in Odisha.
This contract is known as EPC (Engineering, Procurement, and Construction). In simple terms, BHEL has been given full responsibility for the project, starting from the drawing board up to the final switch-on. The company will handle the design, engineering, manufacturing, and supply of all equipment besides executing the complete construction, erection, and commissioning of the power plant.
The new 800-MW unit is a part of the Stage-II expansion of the Darlipali plant in Odisha's Sundargarh district. BHEL has been given 48 months (four years) as a timeline to get the new unit running, as cited on Financial Express.
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A big win for BHEL
This deal is a major win for BHEL, as it would strengthen its partnership with NTPC and it would create a strong ground in India’s power equipment market. This comes right after BHEL announced its strong financial results for the second quarter, where its net profit is standing at ₹374.89 crores, which is a massive 253% jump from the same quarter last year.
This ₹6,650 crore order adds up to a substantial amount to BHEL’s healthy order book, which was standing at ₹1.95 lakh crore at the end of the last financial year. This update acted as a positive sentiment for the investors. BHEL shares closed today’s trading day at ₹263.85, which is a gain of 1.46% from its opening price of ₹258.
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A major boost in India’s power sector
More power: The project will add 800 MW of supercritical, high-efficiency power to the national grid, meeting the energy needs in Odisha and other states.
Make in India: The critical components, such as the boiler, turbine, and generator, will be manufactured by BHEL in its own plants spread across the country, which is a big victory for the “Make in India” initiative.
Energy security: It emphasises the position of thermal power in India's energy mix by providing a steady baseload power that complements intermittent renewable sources such as solar and wind.
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