Bharat Heavy Electricals (BHEL) shares are poised for attention following the announcement that the state-run company has secured an engineering, procurement, and construction (EPC) contract worth over Rs 15,000 crore. The contract, awarded by NLC India, pertains to a 2,400 MW pit head green field thermal power project in Odisha. BHEL disclosed this information to stock exchanges.

The contract with NLC India involves the supply of equipment, including boilers, turbines, generators, and associated auxiliaries, along with electrical and C&I, balance of plant packages. The scope of work encompasses the erection and commissioning of equipment, as well as civil works, with the project expected to be commissioned in 64 months.

BHEL, in its communication to the NSE, specified that the order constitutes the EPC package for the 3x800 MW NLC Talabira Thermal Power Project (NTTPP) in Jharsuguda District, Odisha, India. The major equipment for the project will be manufactured at various BHEL plants across the country.

In a regulatory filing, NLC India provided details on the 2,400 MW (3x800 MW) pit head power project, indicating that it will be situated in Jharsuguda District, Odisha, employing Ultra Super Critical Technology. The EPC contract encompasses engineering, manufacturing, supply, erection, and commissioning of equipment such as boilers, turbines, generators, balance of plants, and more.

NLC India further stated that the entire power output of 2,400 MW is committed to the states of Tamil Nadu, Odisha, Kerala, and Puducherry through already executed power purchase agreements (PPAs). Coal linkage is secured from the 20 MTPA Talabira II & III OCP mines of NLC India, operational since 2020 in Jharsuguda and Sambalpur districts of Odisha. Water for the project is sourced from the Hirakud Reservoir. Boilers will be designed to accommodate co-firing of biomass as part of a Green initiative, according to NLC India.

The project is planned to incorporate the latest pollution control equipment, including FGD and SCR, to comply with Ministry of Environment, Forest and Climate Change (MoEF) guidelines. Boilers will also be designed for co-firing biomass in alignment with Ministry of Power (MoP) guidelines, along with the integration of biomass handling systems. The first unit of the project is scheduled for commissioning in the fiscal year 2028-29.