BHEL Shares Surge 4% as Company Secures Major Thermal Power Plant Contract in Jharkhand
News Mania Desk/ Agnibeena Ghosh/30th June 2024
Shares of Bharat Heavy Electricals Limited (BHEL) surged by 4% to ₹308 apiece in early morning trade today following the company’s successful bid to establish a 1600 MW thermal power plant in Koderma, Jharkhand.
In a significant development aligned with the central government’s focus on bolstering the country’s energy security, the Damodar Valley Corporation (DVC) finalized a ₹13,300 crore engineering, procurement, and construction (EPC) contract with BHEL for the Koderma Thermal Power Station (2X800 MW). This contract, announced by the Ministry of Power, underscores BHEL’s pivotal role in enhancing India’s power generation capacity.
The Koderma project is poised to significantly augment DVC’s thermal generation capacity, pushing it to 8140 MW by 2030, thereby fostering local economic growth and benefiting communities in the region.
BHEL’s robust performance in securing orders has been notable in FY24, with key projects including the EPC contracts for the Yamuna Nagar, Lara Super Critical Power Plant, and Raigad Super Critical Power Plant from the Adani Group. Additionally, the company has diversified its portfolio with orders for 80 Vande Bharat trains and 20 super rapid gun mounts for naval ships, marking its foray into strategic defense sectors.
The company continues to focus on defense contracts, particularly in air defense guns, where it has submitted bids and is advancing with prototypes in collaboration with original equipment manufacturers (OEMs). BHEL has also partnered with a European firm for marine gas turbines, anticipating results in early FY26.
In the power segment, BHEL is accelerating efforts to onboard new vendors while retaining existing ones to ensure timely project execution. The company has noted a robust 8%–10% growth in power consumption from FY22 to FY24, reflecting India’s expanding economy and manufacturing sector.
Looking ahead, India aims to add 80 GW of thermal power capacity by 2032 to mitigate potential peak power shortages. Currently, 30 GW is under construction, with projections indicating 44–45 GW worth of projects to be awarded by FY27. This translates into over 10 GW of annual tendering over the next three years, presenting substantial growth opportunities for BHEL in the thermal power sector.
The successful contract acquisition in Koderma underscores BHEL’s strategic positioning in India’s energy landscape and reinforces its commitment to delivering robust infrastructure solutions that support national development goals.
