BHEL Secures ₹5,400 Cr Mega Contract for Coal-to-Chemicals Plant in Odisha

In a significant development for India’s engineering and energy sectors, Bharat Heavy Electricals Limited (BHEL) has announced the receipt of a major order valued at approximately INR 5,400 Crores (excluding GST).

The contract, awarded on 8th January 2026, involves a critical role in the establishment of a large-scale coal-to-chemicals facility in Odisha.

The order was placed by Bharat Coal Gasification and Chemicals Limited (BCGCL), a strategic joint venture between Coal India Limited (51%) and BHEL (49%).

This domestic project is set to be located at Lakhanpur in the Jharsuguda District of Odisha, focusing on a Coal to 2000 TPD Ammonium Nitrate initiative.

Comprehensive Project Scope Under the terms of the LSTK 1 Package, BHEL is tasked with the design, engineering, and supply of equipment for the Coal Gasification & Raw Syngas Cleaning Plant. The scope of work is extensive, covering:

• Civil works and erection.
• Commissioning and performance guarantee testing, which is expected to be completed within 42 months.
• Operations & Maintenance (O&M) services for a period of 60 months following the preliminary acceptance of the plant.

Strategic and Financial Implications , This “arm’s length” related party transaction highlights BHEL’s dual role as both a promoter of the BCGCL joint venture and the primary executing agency for this technical package.

By securing this domestic tender on a nomination basis, BHEL reinforces its position as a leader in high-tech industrial engineering and sustainable coal utilisation.

For investors and market watchers, this ₹5,400 crore boost to BHEL’s order book represents a robust long-term revenue stream, particularly with the inclusion of a five-year O&M contract following the initial construction phase.

This disclosure was officially signed by Sayed Salahuddin, Manager of Corporate Communication at BHEL.

The announcement serves as a formal notification to the BSE Limited and the National Stock Exchange of India regarding the receipt of a significant commercial order.

Disclaimer: The information provided is for educational purposes only and does not constitute financial advice. We are not registered financial advisors. Please conduct your own research and consult a qualified advisor before making investment decisions. Any investment decisions you make based on this information are solely at your own risk.

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