BHEL Receives Rs 4,000 Crore Order from Mahan Energen for MP Power Project

21 Aug 2023 , 02:15 PM

Bharat Heavy Electricals Ltd. (BHEL), a state-run enterprise, witnessed a rise in its shares on Monday following the announcement of a substantial order. The company disclosed that it secured an order valued at Rs 4,000 crore from Mahan Energen Ltd., a wholly-owned subsidiary of Adani Power.

The order pertains to a power project in Madhya Pradesh and involves BHEL’s supply of crucial equipment such as boilers, turbines, and generators, along with supervision, erection, and commissioning services. Mahan Energen’s 2×800 MW power project situated at Bandhaura in Madhya Pradesh will be the focus of BHEL’s involvement.

BHEL indicated that the project execution timeline is set at 31-35 months, as detailed in the filing submitted to the stock exchanges. The turbine generators for the project will be produced at BHEL’s plants in Trichy and Haridwar. In the previous fiscal year (2022-23), BHEL demonstrated a remarkable growth of over 17 % in its new order receipts, reaching Rs 23,548 crore. The diversification of its business approach played a key role in this achievement.

The company’s robust order book crossed the Rs 1 lakh crore mark, fueled by the finalization of the Vande Bharat train order in April 2023. Despite facing a net loss of Rs 343.9 crore in the June quarter, as opposed to Rs 188 crore in the same period of the previous year, BHEL recorded a 7.1 % rise in total revenue to Rs 5,003.4 crore.

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