BHEL bags ₹5,500 cr order from Haryana Power Generation

Bharat Heavy Electricals (BHEL) shares ended 1.45% lower at ₹227.55 apiece on the BSE even after the company said that it secured an order worth ₹5,500 crore from Haryana Power Generation Corp Ltd. (HPGCL). Investors resorted to profit booking at higher level, as the PSU stock touched its 52-week high of ₹243.30 on Feberuary 5, 2024.

As per the deal, BHEL will establish a 1x800 MW Ultra Supercritical Expansion Unit at the Deen Bandhu Chhotu Ram Thermal Power Plant (DCRTPP) located in Yamuna Nagar, Haryana, India. This expansion will involve providing supply of equipment such as boiler, turbine, generator, and associated auxiliaries, as well as handling electrical and civil works. Additionally, the company will oversee the construction and commissioning of the unit, with the entire contract expected to be completed within 57 months, BHEL states in a filing exchange.

A meeting of the board of directors is scheduled for February 13 to approve the unaudited financial results for the quarter ending on December 31, 2023.

Last month, BHEL secured an order worth ₹15,000 crore for the Engineering, Procurement, and Construction (EPC) package for a 3x800 MW NLC Talabira Thermal Power Project (NTTPP) situated in Jharsuguda district, Odisha. It is expected to be completed in 64 months.

The major equipment will be manufactured at BHEL’s Trichy, Haridwar, Hyderabad, Jhansi, Bengaluru, Ranipet, Bhopal, Rudrapur, Varanasi plants. It will involve the supply of equipment such as boiler, turbine, generator, and associated auxiliaries, as well as handling electrical and civil works.

In December, BHEL entered into a memorandum of understanding (MoU) with the Central Manufacturing Technology Institute (CMTI) to collaborate on the advancement of the hydrogen value chain and Industrial Internet of Things (IIoT) solutions aimed at predictive maintenance of machinery and manufacturing processes.

"Bharat Heavy Electricals Limited (BHEL) and Central Manufacturing Technology Institute (CMTI), an autonomous Institution under the administrative control of the Ministry of Heavy Industries, Govt. of India; have entered into a Memorandum of Understanding (MoU) for collaboration on technology development in the areas of Hydrogen value chain and IIoT solutions for predictive maintenance of machines & manufacturing processes," the company says in a regulatory filing.

In November, BHEL secured a contract valued at ₹2,956 crore from the Ministry of Defence to acquire super rapid gun mount (SRGM) and accessories for the Indian Navy. Additionally, the company has entered into a MoU with Electrite de France S.A. (EDF), the world's largest nuclear operator, to enhance the local content of the Jaitapur Nuclear Power Plant Project, which is being developed by NPCIL in India. In the July-September quarter of FY24, BHEL announced a net loss of ₹238.12 crore as against a profit of ₹12.10 crore in the corresponding period of the previous year. The state-run company’s net income experienced a reduction of 2.07% to ₹5,305.38 crore as against ₹5,418.74 crore in the corresponding period last year.