BHEL shares in focus today as PSU bags Rs 6,100 crore order; key details

Shares of Bharat Heavy Electricals Ltd are in focus today after the engineering and manufacturing company said it has secured a notification of award (NOA) from NTPC for 1x800 MW Sipat Supercritical Thermal Power Project Stage-III worth Rs 6,100 crore, excluding GST. The order is for EPC works including supply of equipment, erection & commissioning and civil works. BHEL said the completion of facilities (COF) is likely by 48 months from the date of NOA. 

Last week, LKP Securities said the stock could potentially reach Rs 288 in the near to short-term. But a drop below Rs 254 level may push it back into the consolidation phase, it added. The scrip closed at Rs 266.15 on Friday, up 3.5 per cent.

BHEL in August signed a contract agreement with Adani Power and its subsidiary (Mahan Energen) for setting up three Supercritical Thermal Power projects (each of 2x800 MW rating) in Kawai, Rajasthan & Mahan, Madhya Pradesh. That order aggregated more than 11,000 crore, excluding GST.
 
Also BHEL had in August secured an order for 2x800 MW Koderma Supercritical Thermal Power Project on EPC basis from Damodar Valley Corporation (DVC). The order for the coal-based project was to be set up in Koderma district of Jharkhand and was awarded through International Competitive Bidding (ICB).

BHEL's scope of work for the Koderma Supercritical Thermal Power Project included supply, erection and commissioning, along with civil works. Key equipment for the project will be supplied by BHEL’s manufacturing units at Haridwar, Trichy, Bengaluru, Hyderabad, Bhopal and Ranipet, while the execution on site will be undertaken by the company’s Power Sector - Eastern Region. The scope also includes highly efficient, state-of-the-art equipment for emission control.

BHEL is the leading power equipment manufacturer in India with a vast installed base of more than 1,68,000 MW of thermal power plants in the country.