BHEL Secures DVC Notice to Proceed for Durgapur Thermal Project

Jyoti Rathi - Kolkata Bureau Jun 11, 2026 1,300 Views

BHEL has received a 'Notice to Proceed' from DVC for an 800 MW ultra-supercritical thermal power project in Durgapur, West Bengal. The initial phase is valued at over ₹900 million. This milestone reinforces BHEL’s role in India's power infrastructure expansion and adds to its substantial multi-billion rupee order book.

Bharat Heavy Electricals Limited (BHEL) has officially received a 'Notice to Proceed' (NTP) from the Damodar Valley Corporation (DVC) for the development of its high-capacity thermal power project in Durgapur, West Bengal. This milestone marks the formal commencement of the execution phase for the project, which is a key component of India’s ongoing push to strengthen its base-load power generation capacity.

The project, involving the installation of an 800 MW ultra-supercritical thermal power unit, is part of a broader infrastructure investment by DVC to modernize and expand its generation fleet. Industry reports indicate that the Limited Notice to Proceed (LNTP) phase carries a valuation of over ₹900 million, setting the stage for the full-scale engineering, procurement, and construction (EPC) activities to follow.

Project Execution and Strategic Importance

The Durgapur thermal project is designed on ultra-supercritical parameters, which offer higher efficiency and lower carbon emissions compared to traditional coal-based power plants. For BHEL, the project is a testament to its continued dominance in the supercritical and ultra-supercritical technology space.

"The issuance of the Notice to Proceed allows BHEL to mobilize resources, initiate site preparation, and begin the procurement of long-lead items necessary for the 800 MW unit," according to officials familiar with the power utility's project roadmap. The project is expected to adhere to a stringent timeline, reflecting the government's urgency to meet India's escalating peak electricity demand.

BHEL’s Order Book Momentum

This development follows a period of robust growth for the state-owned enterprise. In recent months, BHEL has secured several high-value contracts, including a significant ₹21,000 crore EPC package for the 2,400 MW Meja Super Thermal Power Project in Uttar Pradesh and a strategic international order worth over ₹2,000 crore from the Dangote Group in Nigeria.

The company's order book, now estimated to exceed ₹1.5 lakh crore, underscores its pivotal role in the nation’s infrastructure and energy security. With the formal commencement of the DVC Durgapur project, BHEL continues to leverage its manufacturing prowess across its facilities in India, ensuring that key equipment—such as boilers, turbines, and generators—is delivered on schedule to maintain the project’s momentum.

Why It Matters

The Durgapur project is essential for regional grid stability in West Bengal. As India transitions toward a more sustainable energy mix, maintaining a reliable base-load supply from high-efficiency thermal plants remains critical for supporting the intermittent nature of renewable energy sources. The successful and timely execution of this project will directly impact the availability of stable, cost-effective power for the industrial corridors of Eastern India.

Key Facts at a Glance

Project Scope: Installation of an 800 MW ultra-supercritical thermal power unit in Durgapur, West Bengal.
Client: Damodar Valley Corporation (DVC).
Order Status: Formal Notice to Proceed (NTP) issued; LNTP package valued at over ₹900 million.
Strategic Objective: To enhance power generation efficiency and stabilize grid reliability in Eastern India.

FAQ

What does a 'Notice to Proceed' mean for BHEL?

It is a formal authorization that allows BHEL to start physical work, site mobilization, and the procurement of critical components for the power project.

Why is the Durgapur unit described as 'ultra-supercritical'?

Ultra-supercritical units operate at higher steam pressures and temperatures than standard plants, resulting in significantly higher thermal efficiency and lower fuel consumption per megawatt produced.

How does this project fit into BHEL’s order book?

This project adds to BHEL's record-high order book, which now exceeds ₹1.5 lakh crore, further ensuring multi-year revenue visibility for the firm.

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