New Delhi: Bharat Heavy Electricals Limited (BHEL) has received a major project order worth around Rs 2,800 crore. The order was given by Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture of Coal India and BHEL.
The project is related to a syngas purification plant for a coal-to-ammonium nitrate facility. The plant will be set up at Lakhanpur in Odisha’s Jharsuguda district. This project is part of India’s push towards coal gasification and value-added chemical production.
Project details and timeline
Under the contract, BHEL will handle complete project work. This includes design, engineering, equipment supply, civil work, installation, commissioning and maintenance services.
The project is expected to be completed within 42 months from the order date. After completion, BHEL will also provide operations and maintenance support for another 60 months.
The company said the order was given by a domestic entity and qualifies as a related-party transaction, since BHEL is also a partner in the joint venture. However, the company said the deal was done at market terms.
Part of strong order pipeline
The order adds to BHEL’s recent project wins. Recently, the company secured another order worth around Rs 1,200–1,500 crore from Hindalco Industries.
This project is related to a power equipment package for Hindalco’s aluminium plant expansion project in Odisha.
Recent financial performance
BHEL reported strong Q3 results earlier this year. Revenue increased 16.4% year-on-year to Rs 8,473 crore.
EBITDA grew sharply by 79% to Rs 546 crore. Profit margins also improved to 6.4% from 4.2% last year. Net profit rose to Rs 390 crore mainly due to higher income.
BHEL shares closed at Rs 275.90 on NSE, slightly higher ahead of the announcement.
What this means for BHEL?
The new project strengthens BHEL’s order book and supports long-term revenue visibility. It also shows BHEL’s growing role in energy transition and coal chemical projects.
