Shares of Bharat Heavy Electricals Ltd (BHEL) surged 3.7 percent in early trade following the company’s announcement of securing a significant contract worth Rs 13,300 crore. The contract, awarded by the Damodar Valley Corporation (DVC), entails the establishment of a 1600 MW thermal power plant in Koderma, Jharkhand. This development marks a crucial milestone in the government’s strategy to enhance the nation’s energy security and infrastructure.
As of 10:30 AM, BHEL shares traded 2 percent higher at Rs 303, reflecting investor optimism and confidence in the company’s capabilities. Over the past six months, BHEL’s stock has shown robust performance, gaining over 57 percent, significantly outpacing the Nifty 50 index, which recorded a modest increase of just over 10 percent during the same period.
The Koderma Thermal Power Station project (2X800MW) is part of DVC’s efforts to expand its thermal generation capacity, aiming to reach 8,140 MW by 2030. BHEL has been entrusted with the engineering, procurement, and construction (EPC) responsibilities for the project, underscoring its pivotal role in augmenting India’s power infrastructure.
The initiative is expected not only to strengthen energy infrastructure but also to catalyze economic growth in the region, generating substantial employment opportunities and fostering local development.
BHEL, a prominent central public sector undertaking in India, is the largest government-owned manufacturer of power generation equipment. It operates under the administrative oversight of the Ministry of Heavy Industries, Government of India.
Despite reporting a 25 percent decline in net profit at Rs 484.36 crore for the quarter ended March 31, 2024, due to increased expenses, BHEL continues to bolster its position in the energy sector through strategic projects like the Koderma Thermal Power Station. The company remains focused on leveraging its expertise to contribute significantly to India’s sustainable energy goals and economic progress.
