BHEL's Order Book Swells After Rs 5,400 Crore Contract From Coal India JV
BHEL is one of the promoter companies of BCGCL with a 49% stake.
Bharat Heavy Electricals Ltd. on Thursday received an order worth Rs 5,400 crore from Bharat Coal Gasification and Chemicals Ltd., a joint venture company with Coal India Ltd.
The company was awarded a Letter of Acceptance (LOA) of bid for coal gasification and raw syngas cleaning plant of BCGCL's coal to 2000 TPD ammonium nitrate project at Lakhanpur in Jharsuguda district of Odisha, according to a stock exchange filing.
The work order involved design, engineering, supply of equipment, civil works, erection, commissioning and operations and management services for the project.
The project has to be completed within 42 months and O&M services will be provided for five years thereafter.
BHEL is one of the promoter companies of BCGCL with a 49% stake. The order falls within related party transactions and is done at 'arms length', the filing said.
The PSU company's outstanding order book stood at Rs 2,19,600 crore at the end of September quarter, with 80% contribution from power sector.
Vande Bharat Project
Earlier in the day, BHEL announced entry into the semi-high speed rail market by beginning the supply of traction converters for the Vande Bharat sleeper train project.
The first-ever Vande Bharat sleeper train is going to be inaugurated by Prime Minster Narendra Modi later this month, with the train set to cover the Kolkata to Guwahati route.
As far as BHEL's role is concerned, the government-owned company will provide underslung traction converters for the Vande Bharat sleeper trains, with the first batch of products already being flagged off at the company's Bengaluru facility.
Shares of BHEL settled 8.8% lower at Rs 271.75 on the NSE, compared to a 1% decline in the benchmark Nifty 50. The stock is up 25% on a 12-month basis.
