State-run engineering giant Bharat Heavy Electricals Limited (BHEL) has announced a major victory in the industrial sector, securing a significant contract from Steel Authority of India Limited (SAIL).
The deal, awarded through a competitive global tender process, underscores BHEL’s continued dominance in the domestic power and industrial infrastructure space.
The Letter of Acceptance (LOA) pertains to the setup of a Captive Power Plant (CPP) (Package No. CPP-1) at SAIL’s IISCO Steel Plant located in Burnpur.
This project is a critical component of SAIL’s larger 4.08 MTPA CS expansion initiative.
Valued in the range of ₹1,200 crore to ₹1,500 crore (excluding GST), the contract is a comprehensive “turnkey” mandate.
BHEL will be responsible for the entire lifecycle of the package—excluding civil works—which includes:
- Design and Engineering
- Manufacturing and Supply
- Transportation, Unloading, and Storage
- Erection and Commissioning
- Performance Guarantee Testing
Investors should note the long-term revenue visibility provided by this order. The project is scheduled to be commissioned within 39 months from the effective date of the contract.
This win is particularly notable as it was secured via a Global Tender, proving BHEL’s competitive edge against international players in high-stakes infrastructure projects.
Furthermore, the company confirmed that the contract does not involve any related party transactions, ensuring transparency for shareholders.
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