Bharat Heavy Electricals Limited (BHEL) has received a significant Letter of Intent (LOI) from Gujarat State Electricity Corporation Limited (GSECL) for an EPC package for the 1×800 MW Ukai Extension Unit-7 Thermal Power Station, located in Tapi District, Gujarat.
The scope of this EPC (Engineering, Procurement, and Construction) contract includes:
- Supply of Equipment: Boiler, Turbine, Generator, electrical and C&I, and Balance of Plant Packages.
- Erection & Commissioning Works
- Civil Works
This project was awarded through International Competitive Bidding, and the contract value is approximately ₹7,500 Crore, excluding taxes and duties. The project is expected to achieve Commercial Operation within 54 months.
There is no related party interest or promoter involvement in the entity awarding the contract.
This major win reinforces BHEL’s strong presence in the power sector and strengthens its order book for future revenue visibility.
Effect on Share Market:
This order is likely to positively impact BHEL’s stock price in the short to medium term due to:
- Strengthening of BHEL’s order book by a sizable ₹7,500 Crore contract.
- Boost to revenue pipeline and future earnings visibility.
- Increased investor confidence in BHEL’s competitiveness in securing large-scale EPC projects. Investors may view this as a bullish signal, potentially leading to stock price appreciation.
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