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BHEL Secures LOI from GSECL for 1x800 MW Ukai Extension Project of Worth Rs 7,500 Crore

2025-03-21 Niranjan Ghatule

In a significant development for India’s power sector, Bharat Heavy Electricals Limited (BHEL) has received a Letter of Intent (LOI) from Gujarat State Electricity Corporation Limited (GSECL) for the execution of an Engineering, Procurement, and Construction (EPC) package for the 1x800 MW Ukai Extension Unit-7. The project, located in Tapi District, Gujarat, marks another milestone for BHEL in the thermal power sector.

Key Details of the Contract:

Awarding Entity: Gujarat State Electricity Corporation Limited (GSECL)
Nature of the Contract: Supply of critical equipment such as Boilers, Turbines, Generators, associated auxiliaries, Electrical & C&I, and Balance of Plant Packages. Additionally, the contract includes Erection & Commissioning and Civil Works.
Contract Value: Approximately ₹7,500 Crore (excluding taxes and duties).
Bidding Process: The contract was awarded through International Competitive Bidding.
Execution Timeline: The project is expected to achieve commercial operation within 54 months.
Transaction Nature: The contract does not fall under related party transactions, and the promoter group does not have any interest in the awarding entity.

Market Reaction

Following the announcement, shares of BHEL were trading 2.70% higher at ₹211.75 on Friday, reflecting positive investor sentiment towards the company’s growing order book and business outlook.

The receipt of this LOI from GSECL underscores BHEL’s commitment to driving India’s energy sector forward. With an order value of ₹7,500 Crore, this project is set to contribute significantly to the company’s order book and overall growth. As BHEL progresses with the execution of this contract, industry stakeholders will closely watch its impact on India’s power generation landscape.

Disclaimer

This article is for informational purposes only and does not constitute financial or investment advice. Readers are advised to conduct their own research or consult with a financial expert before making any investment decisions. The stock market is subject to risks, and past performance is not indicative of future results.