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Bharat Heavy Electricals Ltd (BHEL) on February 10 received a letter of acceptance (LoA) from Bharat Coal Gasification and Chemicals Limited (BCGCL) for a project valued at approximately ₹2,800 crore, excluding customs duty and goods and services tax.
BCGCL is a joint venture between Coal India Limited , which holds a 51% stake, and BHEL, which owns the remaining 49%. The order pertains to the Syngas Purification Plant under the LSTK-2 package for BCGCL’s coal-to-2,000 tonnes per day ammonium nitrate project at Lakhanpur in Odisha’s Jharsuguda district.
Under the contract, BHEL will undertake design, engineering, supply of equipment, civil works, erection, commissioning, and operations and maintenance services. The project is scheduled to achieve preliminary acceptance, including commissioning and performance guarantee tests, within 42 months from the date of the LoA.
Operations and maintenance services will extend for a further 60 months following preliminary acceptance.
The company clarified that the order was awarded by a domestic entity on a nomination basis and qualifies as a related-party transaction. However, it has been executed at arm’s length, with BHEL acting both as a promoter of BCGCL and as the executing agency for the project.
The latest order adds to BHEL’s recent order momentum. Last week, the company secured an order worth ₹1,200–1,500 crore from Hindalco Industries for the Aditya Expansion Project Phase II in Odisha. That contract involves the design, engineering, supply, installation, commissioning, and performance acceptance testing of a 2×150 megawatt boiler turbine generator package at Hindalco’s Aditya Aluminium facility in Sambalpur district.
In its Q3 results announced on January 19, BHEL reported a 16.4% year-on-year increase in revenue to ₹8,473 crore. EBITDA rose 79% to ₹546 crore, with margins improving to 6.4% from 4.2% a year earlier. Net profit for the quarter increased to ₹390 crore, aided by higher other income.
Shares of BHEL closed at ₹275.90 on the NSE on Tuesday, up 0.46% ahead of the announcement.
BCGCL is a joint venture between Coal India Limited , which holds a 51% stake, and BHEL, which owns the remaining 49%. The order pertains to the Syngas Purification Plant under the LSTK-2 package for BCGCL’s coal-to-2,000 tonnes per day ammonium nitrate project at Lakhanpur in Odisha’s Jharsuguda district.
Under the contract, BHEL will undertake design, engineering, supply of equipment, civil works, erection, commissioning, and operations and maintenance services. The project is scheduled to achieve preliminary acceptance, including commissioning and performance guarantee tests, within 42 months from the date of the LoA.
Operations and maintenance services will extend for a further 60 months following preliminary acceptance.
The company clarified that the order was awarded by a domestic entity on a nomination basis and qualifies as a related-party transaction. However, it has been executed at arm’s length, with BHEL acting both as a promoter of BCGCL and as the executing agency for the project.
The latest order adds to BHEL’s recent order momentum. Last week, the company secured an order worth ₹1,200–1,500 crore from Hindalco Industries for the Aditya Expansion Project Phase II in Odisha. That contract involves the design, engineering, supply, installation, commissioning, and performance acceptance testing of a 2×150 megawatt boiler turbine generator package at Hindalco’s Aditya Aluminium facility in Sambalpur district.
In its Q3 results announced on January 19, BHEL reported a 16.4% year-on-year increase in revenue to ₹8,473 crore. EBITDA rose 79% to ₹546 crore, with margins improving to 6.4% from 4.2% a year earlier. Net profit for the quarter increased to ₹390 crore, aided by higher other income.
Shares of BHEL closed at ₹275.90 on the NSE on Tuesday, up 0.46% ahead of the announcement.
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