BHEL Bags ₹13,500 Crore NTPC Order for Telangana Project

Introduction

Bharat Heavy Electricals Ltd. (BHEL), a key public sector enterprise, has secured a major contract worth ₹13,500 crore from NTPC Ltd. The order is for the main plant package of the 3x800 MW Telangana Stage-II supercritical thermal power project. This development, confirmed in a stock exchange filing on March 30, 2026, reinforces BHEL's dominant position in India's power equipment manufacturing sector and highlights the continued investment in thermal power infrastructure.

Details of the NTPC Contract

The Notification of Award (NOA) was issued to BHEL on March 29, 2026, for the project located in the Peddapalli district of Telangana. The contract's scope is comprehensive, covering the design, engineering, manufacturing, supply, erection, commissioning, and testing of the main plant package. This includes critical components like the boiler, turbine, and generator (BTG), along with all associated civil and structural works. The project involves setting up three power generation units, each with a capacity of 800 MW, contributing a total of 2400 MW to the grid upon completion.

Project Timeline and Bidding Process

The contract was awarded following an international competitive bidding process, where BHEL emerged as the successful bidder in October 2024. Subsequently, the company received a Limited Notice to Proceed (LNTP) in November 2024, which allowed it to commence basic engineering work. The final award solidifies the contract, and BHEL has been given a timeline of 62 months from the date of the award to complete the project. Despite both BHEL and NTPC being central public sector enterprises, the company has clarified that this agreement does not fall under related party transactions.

Key Project Highlights

Strengthening a Long-Standing Partnership

This project further cements the enduring partnership between BHEL and NTPC. BHEL has historically been a primary equipment supplier for NTPC, having contributed to over 57% of NTPC's total thermal power installations across the country. This continued collaboration underscores the trust in BHEL's execution capabilities for large-scale, complex power projects. With an installed base of over 1,68,000 MW of utility power capacity in India, BHEL remains a cornerstone of the nation's energy infrastructure.

BHEL's Robust Order Book and Financial Health

The NTPC order is a significant addition to BHEL's already strong order book, which stood at over ₹1,35,000 crore. The company has witnessed a resurgence in order inflows, particularly from the thermal power sector. During the second quarter of the fiscal year 2024-25, BHEL secured orders worth ₹30,000 crore for projects totaling 7.2 GW. This momentum is supported by the government's plan to tender an additional 80 GW of power capacity by FY28, providing a healthy pipeline for equipment manufacturers like BHEL. Recently, the company also secured a notable order from Hindalco Industries valued between ₹1,200 crore and ₹1,500 crore for its Aditya Expansion Project in Odisha.

Market Reaction and Stock Performance

Following the announcement, the market showed a muted response. As of 12:57 pm on March 30, shares of BHEL were trading at ₹252.85, down by 0.78%. However, looking at the longer-term performance, the stock has delivered returns of nearly 20% over the last 12 months, reflecting investor confidence in its growth trajectory and strong order pipeline. The company's financial performance has also shown improvement, with a reported net profit of ₹106.15 crore in Q2FY25, a significant turnaround from a net loss in the same period last year.

The Resurgence of Thermal Power

This large-scale order highlights the continued relevance of thermal power in India's energy mix, even as the country expands its renewable energy capacity. Supercritical thermal power plants, like the one planned in Telangana, operate at higher efficiencies and have a lower environmental footprint compared to older sub-critical plants. BHEL's expertise in this technology positions it well to capitalize on the modernization and expansion of India's thermal fleet. The company is expected to commission a record 9 GW of thermal power capacity in the current financial year, underscoring its critical role in meeting the nation's growing energy demands.

Conclusion

The ₹13,500 crore order from NTPC for the Telangana Stage-II project is a major win for BHEL, reinforcing its market leadership and execution capabilities. It not only boosts the company's order book but also strengthens its long-standing strategic relationship with NTPC. As India continues to invest in its power infrastructure to support economic growth, BHEL is well-positioned to play a pivotal role in building the nation's energy future, backed by a strong project pipeline and proven technological expertise.