Bharat Heavy Electricals Limited received a Letter of Acceptance worth about ₹2,800 crore from BCGCL for the LSTK-2 syngas purification plant in Odisha. The order covers design, supply, commissioning and O&M services for up to 60 months.
Source: Bharat Heavy Electricals Limited Press Release | Published on Feb 10, 2025
Disclaimer: This content has been published for informational purposes only. Bajaj Broking is not affiliated with, nor does it endorse or assume any responsibility for, the source material. Readers are advised to consult the original publication for complete and accurate context.
As quoted in the press release from Bharat Heavy Electricals Limited (NSE Exchange filings), Bharat Heavy Electricals Limited (BHEL) has received a Letter of Acceptance (LOA) from Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture of Coal India Limited (51%) and BHEL (49%).
The LOA is for the Syngas Purification Plant (LSTK-2 Package) of BCGCL’s Coal to 2000 TPD Ammonium Nitrate Project at Lakhanpur, Jharsuguda district, Odisha.
The order value is approximately ₹2,800 crore, excluding custom duty and GST, and the disclosure was made to BSE and NSE on 10 February 2026 as part of statutory requirements.
Bharat Heavy Electricals Limited and share price remained in focus following the exchange filing.
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Bharat Heavy Electricals Limited received an LOA from BCGCL on 10 February 2026.
The LOA relates to the Syngas Purification Plant (LSTK-2 Package) in Odisha.
The order size is about ₹2,800 crore, excluding custom duty and GST.
Scope includes design, engineering, supply, civil works, erection, commissioning and O&M.
Preliminary acceptance is set for 42 months from the LOA date, with O&M for 60 months after that.
The order is a related party transaction and is stated to be at arm’s length.
The contract includes design, engineering, supply of equipment, civil works, erection, commissioning and operation and maintenance services for the LSTK-2 package. The tender is a domestic tender on a nomination basis.
The order falls within related party transactions because BHEL is a promoter company of BCGCL and also the executing agency for the package. The filing states the transaction is carried out at arm’s length.
Bharat Heavy Electricals Limited and share price are being tracked after the regulatory update.
The company has stated that preliminary acceptance, including commissioning and performance guarantee test, is to be achieved by 42 months from the date of LOA. Operation and maintenance services will run for 60 months from preliminary acceptance.
The contract value is stated at approximately ₹2,800 crore, excluding custom duty and GST.
Particulars | Details |
Awarding Entity | Bharat Coal Gasification and Chemicals Limited (BCGCL) |
JV Ownership | Coal India Limited 51% / BHEL 49% |
Package | Syngas Purification Plant (LSTK-2 Package) |
Project | Coal to 2000 TPD Ammonium Nitrate Project |
Location | Lakhanpur, Jharsuguda, Odisha |
Order Size | Approx. ₹2,800 Crore (Excl. Duty & GST) |
Timeline | 42 Months + 60 Months O&M |
RPT Status | Related party, at arm’s length |
As on 10-Feb-2026 at 15:30 PM IST, Bharat Heavy Electricals Limited share price stood at ₹275.90. The stock was up by ₹1.25 or 0.46%. The session’s price range showed an open of ₹275.40, a high of ₹277.00, and a low of ₹271.00. The previous close stood at ₹274.65.
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