BHEL Gains on Bagging ₹7,500-cr LoI from GSECL
Bharat Heavy Electricals (BHEL) has made significant progress in the power sector, bagging a major order from Gujarat State Electricity Corporation (GSECL) for the Engineering, Procurement, and Construction (EPC) package for the 1×800 MW Ukai Extension Unit-7. The company has announced that it has received a Letter of Intent (LOI) from GSECL for the project, which is estimated to be worth a whopping ₹7,500 crore.
The news has sent BHEL’s stock soaring, with the company’s shares advancing 2.88% to ₹212.40 on the back of the announcement. The commercial operation of the project is expected to start within 54 months from the date of issuance of the LOI.
The Ukai Extension Unit-7 project is a significant development for BHEL, as it marks the company’s entry into the thermal power segment in Gujarat. The project will contribute to the state’s power generation capacity and help in meeting the growing demand for electricity in the region.
BHEL’s expertise in the power sector is well-known, and the company has a strong track record of executing large-scale power projects. The company has been a major player in the Indian power sector, having executed numerous projects for various state and central government entities.
The LOI from GSECL is a testament to BHEL’s reputation and capabilities in the power sector. The company’s ability to deliver complex projects on time and within budget has earned it a strong reputation among clients and stakeholders.
BHEL’s order book is likely to receive a significant boost from this project, which will provide a steady stream of revenue for the company in the coming years. The project’s value of ₹7,500 crore is a significant addition to BHEL’s order book, and it is likely to have a positive impact on the company’s financials.
The project’s scope includes the design, manufacture, supply, construction, testing, and commissioning of the 1×800 MW thermal power plant. The project will be executed by BHEL’s Hyderabad-based unit, and it will require the setting up of a new power plant with a capacity of 800 MW.
The project’s commercial operation is expected to start within 54 months from the date of issuance of the LOI. The project’s timeline is aggressive, and it will require BHEL to work efficiently and effectively to meet the deadline.
BHEL’s entry into the thermal power segment in Gujarat is a significant development for the company and the state. The company’s expertise in the power sector will help in meeting the growing demand for electricity in the region, and it will also provide a boost to the state’s power generation capacity.
In conclusion, BHEL’s bagging of the LOI from GSECL for the 1×800 MW Ukai Extension Unit-7 project is a significant development for the company and the power sector. The project’s value of ₹7,500 crore is a significant addition to BHEL’s order book, and it is likely to have a positive impact on the company’s financials. The project’s commercial operation is expected to start within 54 months from the date of issuance of the LOI, and it will provide a steady stream of revenue for the company in the coming years.
