State-owned Bharat Heavy Electricals Ltd (BHEL) announced that it has secured a contract valued at Rs 7,500 crore to establish an 800 MW unit at the Ukai Supercritical Thermal Power Plant located in Gujarat.

The Gujarat State Electricity Corporation Ltd (GSECL) is observed to have placed this order with BHEL.

The new unit is expected to commence commercial operations within a period of 54 months.

BHEL has secured this contract through international competitive bidding for the construction of a 1x800 MW Ukai supercritical thermal power plant (Unit-7) on an Engineering, Procurement & Construction (EPC) basis, situated in the Tapi district of Gujarat.

Most importantly, the new unit will be constructed on the current ash dyke area.

BHEL’s project responsibilities include the design, engineering, manufacturing, supplying, testing, and commissioning of the EPC package, along with all required electrical, civil, and structural works.

The project scope is also said to encompass the provision of highly efficient equipment for emission control.

Significantly, the initial thermal unit at Ukai was installed by BHEL in 1976, highlighting a long-standing successful collaboration.

As the leading power equipment manufacturer in India, with over 170,000 MW of utility power capacity set up nationwide, BHEL remains essential in enhancing India’s energy security and aiding the goal of self-sufficiency in the power sector.

Shares of Bharat Heavy Electricals Limited (BHEL) increased by as much as 3.29 percent on the BSE, reaching an intraday peak of Rs.213.65. On the National Stock Exchange, BHEL shares gained up to 3.45 percent, also hitting an intraday high of Rs.213.67. The stock drew buying interest after the company announced it had received a letter of intent from Gujarat State Electricity Corporation Limited (GSECL) for a contract valued at Rs.7,500 crore.

Last month, the company secured a comparable letter of intent worth Rs.6,700 crore from Singareni Collieries Company Limited (SCCL) for the supply, installation, testing, and commissioning of the boiler, turbine, generator, and related works for the Singareni Thermal Power Project in Telangana.

BHEL reported a consolidated net profit of Rs.135 crore in the December quarter, representing a 125 percent increase from Rs.60 crore during the same period the previous year. Its operational revenue surged by 32 percent in the October-December timeframe to Rs.7,277.09 crore compared to Rs.5,503.81 crore in the corresponding period last year.

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This year, BHEL shares have fallen 6.82 percent, outperforming the BSE200 index, which has decreased by 3.37 percent, according to data from the stock exchange.