BHEL gains more than 3% ending 3-day losing streak on Rs 2,241 crore order win from NHPC

BHEL share price: The primary equipment for this project will be manufactured at various BHEL plants located in Bhopal, Bengaluru, Jhansi, and Rudrapur. The Dibang Multipurpose Project is expected to be completed within 75 months, encompassing both the manufacturing and execution phases.

BHEL will complete the new project in 75 months.

BHEL share price: Bharat Heavy Electricals Limited (BHEL) shares surged more than 3 per cent in trade on Monday, ending the losing streak in the last three sessions after the company bagged a Rs 2,241 crore order from NHPC Ltd.

The order pertains to the electromechanical works of the Dibang Multipurpose Project located in Roing, Arunachal Pradesh. The project's scope encompasses a broad range of activities, including the design, engineering, manufacturing, supply, erection, and commissioning of the electro-mechanical package.

Shares of BHEL surged as much as 3.6 per cent in morning trade on Monday to hit a high of Rs 109.20 apiece on BSE after the state-run company announced the new order.

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BHEL new order details

The contract encompasses two major components. The first involves the ex-works supply of equipment, materials, spares, tools, and instruments necessary for the project's successful execution. The second will see BHEL be responsible for providing an array of services, including model testing, inland transportation (along with inland insurance) for safe delivery at the project site, unloading, storage, handling, installation, testing, and commissioning of the supplied equipment. The contract also mandates the performance testing of all the supplied equipment to ensure optimal functionality.

This package entails essential components such as turbines, generators, digital governing systems, static excitation systems, transformers, bus reactors, gas-insulated switchgear, outdoor pot yard and switchyard equipment, as well as electrical and mechanical Balance of Plant (BoP) components.

Notably, the primary equipment for this project will be manufactured at various BHEL plants located in Bhopal, Bengaluru, Jhansi, and Rudrapur. The on-site execution, on the other hand, will be overseen by BHEL's Power Sector Eastern Region division, Kolkata. The Dibang Multipurpose Project will be completed in 75 months, encompassing both the manufacturing and execution phases.

The new contract comes on the heels of BHEL recently securing a Rs 4,000 crore order from Mahan Energen Limited, formerly known as Essar Power MP Limited. The subsidiary of Adani Power Limited awarded the contract to BHEL for supplying equipment and ancillary needs for a power project in Madhya Pradesh.

BHEL share price

BHEL's shares were trading 3.37 per cent higher at Rs 108.85 apiece on BSE at 10:53 AM on Monday.

The PSU stock has surged nearly 8 per cent over the past week and more than 37 per cent in the past three months. The share value has surged more than 87 per cent in the past year, showcasing the company's resilience and growth potential in the dynamic market landscape.

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