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BHEL receives Rs 11,000 crore contract for three supercritical power plants from Adani Power

By Consultants Review Team Monday, 26 August 2024

Bharat Heavy Electricals Limited (BHEL) has signed a contract with Adani Power Limited (APL) and its subsidiary Mahan Energen Limited (MEL) for the development of three Supercritical Thermal Power projects for over Rs 11000 crore (excluding GST).

According to BHEL, this arrangement advances India's electricity infrastructure while also reinforcing the company's leadership in the field. The deal, signed on Sunday (August 25), covers the delivery of crucial equipment as well as the management of three major power projects' installation and commissioning phases.

Each project would have a capacity of 2x800 MW and will be built using modern Supercritical Technology. The projects will be constructed in the following locations: Kawai Phases II and III in Rajasthan, and Mahan Phase III in Madhya Pradesh.

Under this deal, BHEL is responsible for delivering a complete suite of equipment, including boilers, turbines, generators, and associated auxiliaries.

The deal also covers control and instrumentation systems. Furthermore, BHEL will oversee the installation and commissioning of these systems, ensuring that they satisfy all operational and performance requirements.

The timing for project completion varies by area. The Kawai Phase-II project is scheduled to be finished in 49 months, Kawai Phase-III in 52 months, and Mahan Phase-III in 55 months. These timetables represent the project's size and complexity, as well as the commitment to completing it within a specific time frame.

The contracts were granted by Adani Power Limited and its subsidiary, Mahan Energen Limited, both of which are local companies.

There is no indication that any promoters or group firms have a share in the awarding corporations. Furthermore, the contracts do not constitute related party transactions and were carried out at arm's length.

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