BHEL Secures Major Power Plant Deal From SAIL

BHEL has won a major ₹1,500 crore captive power plant contract from Steel Authority of India Ltd (SAIL), marking a big boost for the state‑run engineering firm’s order book.

The captive power plant deal comes through a Letter of Acceptance issued by SAIL and is tied to the expansion of its IISCO Steel Plant at Burnpur, West Bengal, as part of a 4.08 million tonnes per year crude steel capacity increase.

Under the contract, BHEL will deliver the captive power plant package on a turnkey basis. The scope covers design, engineering, manufacture, supply, erection and commissioning of the plant, while civil work is excluded. The project value is in the range of ₹1,200 crore to ₹1,500 crore, excluding GST, with performance testing also part of the job.

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According to the regulatory filing, BHEL is expected to complete the power plant and have it commissioned within 39 months from the date the contract takes effect. The timeline reflects the complexity of building a captive facility that will generate electricity specifically for SAIL’s steelmaking operations.

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For SAIL, adding this captive power plant is a key part of its strategy to ensure reliable and cost‑effective energy for its expanded steel plant capacity. For BHEL, the order reinforces its strong presence in India’s power infrastructure segment and adds significant revenue visibility at a time when securing large industrial contracts is a priority.

The win comes as BHEL continues to chase growth in the power and industrial sectors, where long‑term, high‑value contracts like this one play a crucial role in supporting its overall financial performance and backlog.