Bharat Heavy Electricals Limited (BHEL) has successfully secured a significant domestic contract from the Steel Authority of India Limited (SAIL) for the expansion of the IISCO Steel Plant in Burnpur. Valued between Rs 1,200 crore and Rs 1,500 crore (excluding GST), the project involves the development of a Captive Power Plant (CPP) to support a 4.08 MTPA crude steel expansion. The Letter of Acceptance, received on February 17, 2026, follows a global tender process, highlighting BHEL’s competitive standing in the heavy electrical and power equipment sector.
The scope of this turnkey contract includes the design, engineering, manufacture, supply, and commissioning of the CPP package, along with performance guarantee testing. While BHEL is responsible for the full technical lifecycle of the plant—from transportation and storage to final erection—the agreement excludes civil works. The project is slated for completion within a 39-month timeframe from the effective date of the contract, marking a substantial addition to BHEL's industrial order book and supporting SAIL’s broader production capacity goals.
About the Company
Bharat Heavy Electricals Ltd (BHEL), a leading public sector enterprise under the Ministry of Heavy Industries and Public Enterprises, has been at the forefront of India's power sector for over six decades. With a strong track record in the design, engineering and manufacturing of a wide range of power generation equipment, BHEL has played a pivotal role in powering the nation's economic growth. BHEL Limited manufactures various power plant equipment.
The President of India, through the Ministry of Heavy Industries, has initiated an Offer for Sale (OFS) for 17,42,09,815 equity shares or 5 per cent stake in Bharat Heavy Electricals Limited (BHEL). The company has a market cap of over Rs 91,000 crore. The President of India’s portfolio owns 58.17 per cent and Life Insurance Corporation of India’s portfolio owns 6.21 per cent as of February 13, 2025. The company’s order book stands at Rs 2,19,600 crore and the stock is up over 50 per cent from its 52-week low of Rs 176 per share.
Disclaimer: The article is for informational purposes only and not investment advice.
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President of India sold 5% stake: BHEL receives order for captive power plant from SAIL