BHEL Lands Massive Rs 10,000 Crore Contract for Koderma Thermal Power Plant in Jharkhand

Bharat Heavy Electricals Limited (BHEL), a state-owned engineering and manufacturing giant, has secured a monumental contract worth over Rs 10,000 crore from the Damodar Valley Corporation (DVC). This contract, exclusive of taxes and duties, involves the construction of a 2x800 MW thermal power station in the Koderma district of Jharkhand.

The project, known as the Koderma Phase-II Thermal Power Station, is set to be executed on an Engineering, Procurement, and Construction (EPC) basis. BHEL will oversee the entire project lifecycle, covering everything from design and engineering to procurement, construction, testing, and commissioning. This comprehensive approach ensures that BHEL will manage all critical aspects of the project, reinforcing its reputation as a key player in the power generation sector.

BHEL's responsibilities under this contract are extensive. The company will supply essential equipment, including boilers, turbines, generators, and related auxiliaries. Moreover, BHEL will provide the necessary electrical, control, and instrumentation (C&I) systems, as well as balance of plant (BoP) packages. The scope of work also encompasses the erection, commissioning, and civil works required to bring the thermal power station to life.

This significant order is expected to greatly enhance BHEL's order book, strengthening its market position. The project is slated for completion within 52 months, marking a substantial addition to India's power infrastructure.

The announcement of this contract had an immediate positive impact on BHEL's stock performance. On the Bombay Stock Exchange, BHEL's shares closed at Rs 317.25, reflecting a 1.96% increase. This uptick underscores investor confidence in the company's future prospects, buoyed by this substantial new order.

BHEL, with the Indian government holding a 63.17% stake as of March 31, 2024, remains a pivotal entity in the power and industrial equipment sectors. Despite reporting a decline in net profit for the fourth quarter of FY24, this new contract with DVC is a promising development. It not only signals potential for growth but also reinforces BHEL's critical role in India's ongoing industrial and infrastructural expansion.

As BHEL embarks on this ambitious project, the successful completion of the Koderma Phase-II Thermal Power Station will not only bolster its portfolio but also contribute significantly to the power capacity in Jharkhand. This aligns with India's broader goals of enhancing its power generation capabilities to meet the rising demand for energy across the country.