BHEL gains ~2% on clinching deal worth ₹4,000 Crore

28 Mar 2024 , 11:33 AM

Bharat Heavy Electricals Limited (BHEL) shares jumped 2% in early trading on March 28 after the business won a ₹4,000 Crore contract from Adani Power.

At around 10.46 AM, BHEL was trading 1.30% higher at ₹246.25, against the previous close of ₹243.10 on NSE. The counter rose to an intraday high of ₹253.70.

BHEL won a letter of award (LOA) for the delivery of equipment (boiler, turbine, generator) as well as supervision of installation and commissioning for a 2×800-MW supercritical power project in Raigarh Phase II, Chhattisgarh.

The boiler and turbine generator will be produced at BHEL’s Trichy and Haridwar factories. Unit-1 supply will be completed in 31 months, while Unit-2 will take 35 months.

Earlier this month, NTPC awarded the business a contract to build the 1,600-MW Singrauli Supercritical Thermal Power Plant (STPP) Stage III.

The facility would be built close to the current 2,000-MW thermal power station (TPS) in Singrauli, Uttar Pradesh’s Sonbhadra district, according to BHEL.

BHEL is India’s largest engineering and manufacturing company in the energy and infrastructure industries. Established in 1964, it is a global leader in power equipment manufacturing and one of the first and most significant contributors to the development of an Aatmanirbhar Bharat.

Adani Power is a thermal power producer in India with a power generating capacity of roughly 12,450 megawatts (MW), which includes 12,410 MW of thermal power plants and a 40 MW solar project. It focuses on electricity generating and coal trade.

Adani Power further stated that Mahan Energen (MEL), a fully owned subsidiary of the business, has signed a 20-year long-term Power Purchase Agreement (PPA) for 500 MW with Reliance Industries (RIL) under the Captive User policy as stipulated by the Electricity Rules, 2005.

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