BHEL Secures ₹11,000 Crore Order from Adani Power and Subsidiary Mahan Energen

State-run Bharat Heavy Electricals Ltd has bagged a Rs 11,000 crore order from Adani Power and its subsidiary Mahan Energen Ltd for setting up three "supercritical thermal power projects," the company said.

The projects, with each 2×800 MW rating, are to be located in Kawai, Rajasthan, and Mahan, Madhya Pradesh. The company has to complete the Kawai Phase-II project within 49 months, the Kawai Phase-III within 52 months, and the Mahan Phase-III within 55 months from the date of award, according to a filing with the stock exchange.

According to the terms of the contract, BHEL will be the equipment supplier and will be responsible for the supervision of erection and commissioning work for both power plants. Supplies will include boilers, turbines, generators, associated auxiliaries, control and instrumentation systems.

The contract involves the following:
"Bharat Heavy Electricals Limited has signed a contract agreement with Adani Power Ltd. and its subsidiary, (Mahan Energen Ltd.), for setting up three Supercritical Thermal Power projects, each of 2×800 MW rating, at Kawai in Rajasthan and Mahan in Madhya Pradesh," said BHEL.

BHEL posted a revenue growth of 9.6 per cent at Rs 5,484 crore for the April-June quarter compared with the corresponding period of the previous year.

Adani Power consolidated continuing profit before tax zoomed 95 per cent to ₹4,483 crore in Q1 FY25 from ₹2,303 crore last year. This has come on the back of higher EBITDA and lower finance costs.

The company's consolidated power sale volume surged to 24.1 billion units for the quarter ending Q1 FY25 as against 17.5 billion units in Q1 FY24, representing growth of 38% on higher power demand and augmented operating capacity.

This growth mirrors the larger trend of improving power demand across India, with aggregate demand up 10.6 percent year over year in the first quarter while peak demand hit a record 250 GW, up 12 percent.

Adani Power has thermal power capacity of 15,210 MW across eight power plants in the states of Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, and Jharkhand, with another one being a 40 MW solar power plant in Gujarat.