BHEL stock soars 4% after company secures ₹13,300 crore thermal power project

Shares of Bharat Heavy Electricals (BHEL), a leading engineering and manufacturing company in the energy and infrastructure sectors, have gained 4% to ₹308 apiece in today's early morning trade after the company secured a significant contract to establish a 1600 MW thermal power plant in Koderma, Jharkhand.

Commensurate with the goal of the central government to ensure the energy security of the country, DVC has finalised the tender for the engineering, procurement, and construction (EPC) package of Koderma TPS (2X800 MW) in Jharkhand with Bharat Heavy Electricals for ₹13,300 crore on June 26, 2024, a power ministry statement said.

With this investment, which would also have a substantial impact on the local economy and benefit people, the installed thermal generation capacity of DVC would go up to 8140 MW by 2030.

The company has secured significant orders in FY24, marking a notable achievement. Among the major orders received last year are the EPC orders for Yamuna Nagar, Lara Super Critical Power Plant, and Raigad Super Critical Power Plant from the Adani Group.

Additionally, the company received orders for 80 Vande Bharat trains and 20 super rapid gun mounts for naval ships, with the contractual delivery of Vande Bharat trains set to begin in June 2025.

The company has focused heavily on defence, securing a large volume of orders over the past 1.5 years. A significant opportunity lies in the air defence gun sector, for which a bid has been submitted.

It is developing a prototype in partnership with an OEM and has also partnered with a European company for marine gas turbines and has submitted a bid, with results expected in early FY26.

In the power segment, to ensure timely execution, efforts are to get new vendors on board along with retaining the old ones. Power consumption has grown at 8%–10% in FY 22–24. With high growth expectations for India’s economy and manufacturing sector, there are concerns about a potential peak power shortage.

To address this, the government plans to add 80 GW of thermal capacity by 2032. Currently, 30 GW is under construction, and 44–45 GW worth of projects is expected to be awarded by FY27, leading to over 10 GW of annual tendering over the next three years.

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