BHEL Wins Rs 19,422 Cr turnkey contract for Ultra Supercritical Power Plant in Odisha
New Delhi: Bharat Heavy Electricals Limited (BHEL) has emerged as the top bidder for a turnkey contract valued at Rs 19,422 crore, securing the opportunity to construct a thermal power plant for NLC India in Talabira, Odisha. A recent report from the Hindu Business Line highlighted BHEL’s success in outperforming competitors, including L&T-MHI, by presenting a more competitive price during the opening of financial bids for this significant project.
Project Overview: BHEL is poised to construct three ultra supercritical units, each with an impressive capacity of 800 MW, at the Talabira site for NLC India. Notably, NLC has expanded the project by incorporating a fourth unit of 800 MW. While the Engineering, Procurement, and Construction (EPC) tender originally covered the first three units, it remains uncertain whether a separate tender will be issued for the additional unit. Ultra-supercritical thermal plants, known for their significantly high steam temperature and pressure (approximately 600 degrees C and 240 bar), promise enhanced efficiency, providing more power per unit of fuel.
Financial Performance and Stock Growth: BHEL’s stock price has demonstrated remarkable growth over the past six months, more than doubling and registering a notable 133% increase. This positive trajectory contrasts sharply with the S&P BSE Sensex, which experienced a growth rate of 10.6% during the same period. BHEL’s shares have consistently delivered positive annual returns since 2021, recording a 150% gain in the previous year, 34% in 2022, and an impressive 64% in 2021, marking the company’s best calendar year since 2003.
Order Book Position: As of September 30, 2023, BHEL’s order book reached an impressive Rs 1.14 trillion. Breaking down the figures, 72% (Rs 82,673 crore) of the orders originated from the power sector, while 24% (Rs 27,810 crore) came from the industry sector, and the remaining 4% (Rs 3,942 crore) stemmed from exports. The company attributes this robust order booking to successful diversification initiatives and resurgence in thermal power ordering.
Financial Year 2023-24 Order Performance: In the initial half of the financial year 2023-24 (April to September), BHEL secured orders worth Rs 33,479 crore, representing a substantial increase compared to the Rs 12,310 crore obtained during the same period in the previous fiscal year. The company credits the realization of diversification initiatives and the revival of thermal power ordering for this impressive order growth.
