BHEL wins Rs 4,000cr contract for power project equipment from Adani Power’s subsidiary

Bharat Heavy Electricals Limited (BHEL) has been announced as the contract winner by Mahan Energen Limited, previously known as Essar Power MP Limited and now a wholly-owned subsidiary of Adani Power Limited. This lucrative contract involves the supply of high-end power project equipment to Bandhaura, Madhya Pradesh.

From a financial perspective, this contract is valued at approximately Rs 4000 crores, excluding GST. It’s notable that this monumental deal doesn’t involve any related party transactions, nor do the promoter or group companies have any vested interest in Mahan Energen Limited.

The terms of this domestic contract specify the supply of equipment based on supercritical technology, including a boiler, turbine, and generator. Furthermore, BHEL will also oversee the erection and commissioning of the 2×800 MW power project. The manufacturing of the boiler and turbine generator will be undertaken at BHEL’s plants located in Trichy and Haridwar, respectively.

Delving into the specifics, the contract includes the provision of associated auxiliaries alongside the primary equipment, as well as the inclusion of control and instrumentation. This domestic contract mandates that the delivery for Unit-1 should be completed within 31 months, followed by Unit-2 within a span of 35 months.

BHEL’s latest win reaffirms its dominant position in the domestic power equipment market and represents a promising expansion of its portfolio, further solidifying its partnership with major power players like Adani Power Limited.