Breaking news in the Indian energy sector: Bharat Heavy Electricals Limited (BHEL) has secured a significant Rs 19,422-crore turnkey contract, outbidding L&T-MHI to construct a thermal power plant at Talabira, Odisha. This development marks a pivotal moment for BHEL and the Indian energy landscape.
BHEL’s Triumph in Bidding
The financial bids, opened on Friday, revealed BHEL’s competitive edge with a more attractive pricing strategy than its rival, L&T-MHI. This victory for BHEL is a testament to its capacity to handle large-scale, high-value projects in the energy sector.
Project Details
The project, commissioned by NLC India, involves the construction of three ultra-supercritical units, each with an 800 MW capacity. Ultra-supercritical thermal plants are known for their high efficiency, operating at extreme steam temperatures and pressures. This efficiency translates to higher power output per unit of fuel consumed. Additionally, NLC India is contemplating the addition of a fourth 800 MW unit, although it remains unclear whether a separate tender will be issued for this extension.
Impact on BHEL’s Operations
This project is a boon for BHEL’s facilities across India. It will engage BHEL’s plants in Tiruchi (boilers), Haridwar (turbine-generator), and Hyderabad (various components, including pulveriser mills). The influx of work promises to significantly boost BHEL’s production activities.
Coal Supply and Project Logistics
The power plant will utilise coal sourced from NLC’s own Talabira mines. With current production at 14.5 million tonnes and plans to increase to 20 million tonnes, NLC ensures a steady coal supply for the power plant. Originally planned for Sirkazhi in Tamil Nadu, the project was strategically moved to Talabira to reduce coal transportation costs.
NLC India’s Broader Portfolio
As of September 2023, NLC India boasts a diverse portfolio, including 3.6 GW of thermal power capacity, 1.4 GW of renewable energy, and significant mining operations. The company is ambitiously aiming to expand its electricity generation capacity to 17 GW by 2030, further solidifying its position in the energy sector.
Financial Performance
NLC India’s financial health remains robust, with a turnover of Rs 2,744 crore and a net profit of Rs 1,121 crore in the last quarter. The company’s impressive PAT margin of 40.87% underscores its operational efficiency and profitability.
The Talabira power plant project award to BHEL is a milestone in India’s energy sector, promising economic growth and increased energy production. It stands as a testament to BHEL’s capabilities and the strategic vision of NLC India in the rapidly evolving energy landscape.