BHEL bags three contracts worth ₹11,000 crore from Adani Power to set up supercritical thermal projects

Bharat Heavy Electricals Ltd (BHEL) announced Monday that it has secured a contract with Adani Power Ltd and its subsidiary Mahan Energen Ltd to develop three Supercritical Thermal Power projects valued at more than ₹11,000 crore, according to the company's Bombay Stock Exchange (BSE) filing on August 26.

The company said the three thermal power plants would be set up in Kawai, Rajasthan and Mahan, Madhya Pradesh, with a 2x800 megawatt (MW) rating, per the filing. The cumulative value of the three projects adds up to more than ₹11,000 crore, excluding GST, according to BHEL.

Under the agreement signed on August 25, the state-owned engineering and manufacturing company will supply equipment such as boilers, turbines, and generators and oversee the erection and commissioning of the three thermal power plant projects based on supercritical technology, per the company filing on BSE.

BHEL has different timelines for completing the project: 49 months for the Kawai Phase-II project, 52 months for the Kawai Phase-III project, and 55 months for the Mahan Phase-III project, according to the filing.

As of 2:40 pm on Monday, shares of BHEL were up 0.59% at ₹297.90, compared to ₹296.15 at Friday's market close. The company announced the deal on the BSE website at 9:40 am on Monday. 

Meanwhile, shares of Adani Power Ltd were down 2.06% at ₹661.95 as of 3:05 pm on Monday, compared to ₹675.85 at Friday's close. 

In a separate filing on Sunday, BHEL announced that one of its executive directors, K Ravishankar, who was in charge of corporate research and development (R&D), retired on August 24 from Hyderabad. 

The entities issuing the contract, Adani Power and its subsidiary Mahan Energen, are domestic companies, and the nature of the contract awarded remains the same as per the filing.

BHEL serves core sectors like industrial systems and products, transportation, e-mobility and battery energy storage, renewable energy, oil and gas, water, defence, and aerospace, according to the company website.