State-owned engineering and manufacturing firm, Bharat Heavy Electricals Limited (BHEL), has been awarded a significant contract worth over Rs 10,000 crore (excluding taxes and duties) by Damodar Valley Corporation (DVC). The contract entails the construction of a 2x800 MW thermal power station in Koderma district, Jharkhand.
The project, known as the Koderma Phase-II Thermal Power Station, will be executed on an Engineering, Procurement, and Construction (EPC) basis, with BHEL responsible for the entire project lifecycle, including design, engineering, procurement, construction, testing, and commissioning.
BHEL's scope of work encompasses the supply of critical equipment such as boilers, turbines, generators, and associated auxiliaries. Additionally, the company will provide electrical and control and instrumentation (C&I) systems, balance of plant (BoP) packages, and undertake erection, commissioning, and civil works for the project.
This substantial order is expected to contribute significantly to BHEL's order book and bolster its position in the power generation sector. The project is scheduled to be completed within a timeframe of 52 months.
Following this announcement, BHEL's shares witnessed a positive response on the Bombay Stock Exchange, closing at Rs 317.25, marking a 1.96% increase.
BHEL, with the Indian government holding a 63.17% stake as of March 31, 2024, is a leading player in the power and industrial equipment sector. While the company reported a decline in net profit for Q4 FY24, this new contract signifies a positive development and potential for growth.
