BHEL bags order worth Rs 4,000 crore from Adani Power subsidiary

Bharat Heavy Electricals Limited (BHEL), on Monday, said it has secured an order of Rs 4,000 crore from Mahan Energen Limited, a wholly owned subsidiary of Adani Power.

Shares of Adani Power zoomed nearly 7.70 per cent intraday after the announcement, while BHEL's stock surged 3.27 per cent to an intraday high of Rs 101.20.

Under the contract, BHEL will supply equipment including a boiler, turbine, and generator, along with supervising erection and commissioning of 2x800 MW power project based on supercritical technology in Bandhaura, Madhya Pradesh.

The manufacturing of boiler and turbine generator components will take place at BHEL's Trichy and Haridwar plants, respectively.

This contract has been awarded by a domestic entity and does not involve any promoter, promoter group, or group company interest. It is not categorised as a related party transaction and is being conducted at "arms length", BHEL said in an exchange filing.

The project execution timeline entails supplying Unit-1 within 31 months and Unit-2 within 35 months, BHEL added.

Shares of Adani Power settled 7.32 per cent higher at Rs 326.90 apiece on NSE. While the shares of BHEL settled 2.80 per cent higher at Rs 100.80 apiece, when the market closed today, August 21, 2023.