BHEL bags Rs 15,000 crore EPC contract from NLC India for Odisha project

EPC contract scope includes engineering, manufacturing, supply, erection and commissioning of equipment such as boilers, turbines, generators, balance of plants and others.

BHEL bags Rs 15,000 crore EPC contract, image credit: Reuters

Integrated lignite and coal mining and power generation company NLC India Ltd has awarded over Rs 15,000 crore engineering, procurement and construction (EPC) contract to Bharat Heavy Electricals Ltd (BHEL) for 2,400 MW pit head green field thermal power project in Odisha, the two companies said.

In a regulatory filing, NLC India said the 2,400 MW(3x800 MW) pit head power project will come up at Jharsuguda District in Odisha based on Ultra Super Critical Technology.

EPC contract scope includes engineering, manufacturing, supply, erection and commissioning of equipment such as boilers, turbines, generators, balance of plants and others.

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“The entire power of 2,400 MW is tied up with the states of Tamil Nadu, Odisha, Kerala and Puducherry and PPAs (power purchase agreement) already executed,” NLC India said.

The coal linkage is available from 20 MTPA Talabira II & III OCP mines of NLC India which is already operational from the year 2020 in Jharsuguda and Sambalpur districts of Odisha.

The water required for the project is linked from Hirakud Reservoir.Boilers will be designed to suite the co-firing of Bio mass as part of Green initiative. The first unit of project is scheduled for commissioning in the FY 2028-29.

Being a pit head thermal power project, the variable cost will be competitive and NLC India, will be generating and providing low-cost power to its beneficiaries, the company said.

According to BHEL, the equipment for the project will be manufactured at its Trichy, Haridwar, Hyderabad, Jhansi, Bengaluru, Ranipet, Bhopal, Rudrapur and Varanasi plants.

As to the order size, BHEL said: “In excess of Rs 15,000 crore excluding taxes & duties.”

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