Image Source: Indian Masterminds
Bharat Heavy Electricals Limited (BHEL), a premier Indian engineering and manufacturing giant in the power sector, has officially accepted a Letter of Intent (LOI) dated September 3, 2025, from MB Power (Madhya Pradesh) Limited. The LOI pertains to the supply of critical equipment for the 1x800 MW Anuppur Thermal Power Project located in Madhya Pradesh. This development marks a significant order win for BHEL valued at approximately ₹2,600 crore excluding GST, reaffirming the company's commanding presence in India's power generation market.
Key Highlights of the Order:
Entity Awarding the Contract: MB Power (Madhya Pradesh) Limited, a domestic power sector entity.
Scope of Supply: BHEL will supply a suite of key equipment comprising Boiler, Turbine, Generator, along with associated auxiliaries, controls, and instrumentation systems.
Technology Base: The project will operate on supercritical technology, enhancing efficiency and environmental compliance.
Manufacturing Hubs: The Boiler components are to be produced at BHEL’s Trichy plant, while the Turbine and Generator units will be manufactured at the Haridwar facility.
Contract Value and Timeline: The contract is valued at approximately ₹2,600 crore (excluding GST), with a stipulated equipment supply completion timeline of 58 months.
Contractual Details: A formal contract agreement is expected to be signed shortly to finalize terms.
Corporate Transparency: Confirmation that no promoter group or related parties hold interest in MB Power, and the transaction is conducted at arm’s length, ensuring governance clarity.
Project and Contractual Insights
The Anuppur Thermal Power Project stands out as a notable advancement in Madhya Pradesh's energy infrastructure, offering 800 MW capacity through a single unit. BHEL's involvement underscores its strategic focus on deploying supercritical technology for cleaner and more efficient thermal power generation. Supercritical technology operates at higher temperatures and pressures, thus improving thermal efficiency and reducing emissions compared to traditional subcritical plants.
Manufacturing at specialized BHEL plants leverages in-house expertise and state-of-the-art facilities. The Trichy plant will focus on boilers, critical for steam generation, while the Haridwar plant will handle turbine and generator production, crucial for converting steam energy into electricity. This distribution ensures optimal quality and adherence to project timelines.
Financial Impact and Strategic Importance
The ₹2,600 crore order enhances BHEL’s order book substantially, reflecting robustness in winning large-scale infrastructure projects within the domestic market. This contract is strategically important as India continues to scale up its power generation capacity with a focus on higher efficiency and sustainability. The project aligns with national priorities of energy security and technological modernization in the power sector.
Moreover, the 58-month supply schedule reflects the complexity and scale of the project, signaling a long-term revenue stream for BHEL. Investor confidence is expected to be buoyed by this significant contract win, considering BHEL’s ability to secure and execute major power equipment orders.
Corporate Governance and Transparency
BHEL has explicitly stated that neither its promoters nor group companies have any interest in MB Power, and the order does not fall under related party transactions. Such transparency and adherence to arm’s length principles enhance corporate governance standards, reassuring stakeholders about the integrity of the deal.
Summary
The acceptance of the Letter of Intent by BHEL for the Anuppur Thermal Power Project from MB Power (Madhya Pradesh) Limited marks a key milestone in advancing India’s power infrastructure. With sophisticated supercritical technology and a significant supply contract valued at around ₹2,600 crore, this project emphasizes BHEL’s role as a pivotal player in the energy sector. The project’s successful execution over the 58 months will contribute to meeting India’s growing electricity demand while supporting the country’s sustainability goals.
Source: Moneycontrol, BusinessUpturn
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