Bharat Heavy Electricals Limited (BHEL), a prominent player in India’s power sector, has received a Letter of Award (LoA) from Maharashtra State Power Generation Company Limited (MAHAGENCO) for the 2x660 MW BTG package of Koradi Thermal Power Station. This marks a significant milestone for BHEL, further solidifying its presence in the power generation and thermal plant sector.

Contract Details and Scope

The awarded contract pertains to the BTG (Boiler, Turbine, and Generator) package for Units 11 and 12 of the Koradi Thermal Power Station, located in the district of Nagpur, Maharashtra. The comprehensive contract includes the supply of equipment, erection and commissioning, and civil works associated with the thermal power units.

With a total contract value estimated at approximately Rs. 8000 Cr., excluding GST, this award reflects the importance of the Koradi project in expanding Maharashtra’s power generation capacity. The completion of performance guarantee tests and handover of the units to the owner is scheduled for a span of 52 to 58 months, depending on the respective unit.

Timeline and Execution

The Letter of Award was received on 7th February 2025, marking the official commencement of this major power project. The execution of the contract will be done in compliance with the domestic competitive bidding process, ensuring that the project adheres to both industry standards and government regulations. The performance guarantee tests will be completed within 52 months for Unit 11, and 58 months for Unit 12.

No Related Party Transactions

Regarding the relationship between BHEL and MAHAGENCO, it is clarified that there are no related party transactions involved in this order. Both entities—BHEL, a Central Public Sector Enterprise (CPSE), and MAHAGENCO, a Government of Maharashtra Undertaking—are government-owned, and their collaboration does not fall within any conflict of interest or non-arm's length transaction.

This award is a testament to BHEL’s capabilities and expertise in the power sector, particularly in large-scale thermal power projects. It also underscores MAHAGENCO’s confidence in BHEL’s ability to successfully execute complex and critical power plant packages.

Conclusion

This development signals a positive move for BHEL, showcasing its continued leadership in thermal power plant contracts. With MAHAGENCO's backing, this project will contribute significantly to the power generation capacity of the state of Maharashtra, while also creating opportunities for local industry growth and technology advancement.

Investors and stakeholders will be closely monitoring the progress of this project, as it not only enhances BHEL’s portfolio but also plays a pivotal role in meeting the growing energy demands of the region.

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