BHEL secures ₹15,000-crore contract from Madhya Pradesh Power Generating Company Limited

Bharat Heavy Electricals Limited (BHEL) said on Tuesday that it has secured a major contract, valued between ₹13,000 and ₹15,000 crore exclusive of taxes and duties, from Madhya Pradesh Power Generating Company Limited (MPPGCL).

The contract pertains to the engineering, procurement, and construction (EPC) work for the 660-megawatt Amarkantak Unit 6 and the 660-megawatt Satpura Unit 12 thermal power projects. Within the scope of the contract, the EPC work will also include the supply of equipment, erection, commissioning, and civil works. For each thermal power unit, the work is scheduled to be completed within 57 months.

BHEL also said in a regulatory filing that the orders were placed by a domestic entity, and no promoter group has any interest in the entity that awarded the contracts. The transaction also does not fall under related party transactions, it clarified.

Shares of BHEL were trading 1.15% higher at ₹236.65 apiece. It has fallen 15.35% in the past 12 months.

Earlier this month, the public sector undertaking accepted a letter of intent from MB Power Limited of Madhya Pradesh for the supply of boiler, turbine, and generator equipment for the 1x800 megawatt Anuppur Thermal Power Project. The contract was valued at ₹2,600 crore.

BHEL also informed that the boiler and turbine generator are to be manufactured at BHEL’s Trichy and Haridwar plants, respectively. The project is expected to be completed within 58 months, according to a regulatory filing from the state-run engineering firm.

In August, it signed a License Agreement for Transfer of Technology (LAToT) with Defence Metallurgical Research Laboratory (DMRL), Hyderabad, a research laboratory of the Defence Research and Development Organisation (DRDO), for an undisclosed amount. The LAToT was for the manufacturing of Fused Silica Radar Domes using a Cold Isostatic Pressing and Sintering Route, and the remaining terms of the LAToT were confidential, as stated in a regulatory filing.

BHEL also said in the regulatory filing that the Fused Silica Radar Domes Technology acquired from DMRL will help BHEL to indigenously manufacture radar domes—a key component for seeker-based guidance in India’s missile programs—strengthening India’s self-reliance in strategic defence systems.

Last month, BHEL started the financial year on a sombre note by reporting a wider net loss of ₹455.4 crore for the first quarter that ended June 30. In the year-ago period, it had posted a net loss of ₹211 crore. The PSU said that the net loss had widened due to an increase in expenses.

Its revenue from operations recorded a marginal increase of 0.4%, from ₹5,484.9 crore in the previous quarter of the last fiscal year to ₹5,486.9 crore in the quarter ended June 30.