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Bharat Heavy Electricals Limited (BHEL) has secured a contract worth INR 13,500 crore from NTPC Limited for the main plant package of the 2,400 MW Telangana Stage-II thermal power project. The order, confirmed through a notification of award received in recent days, covers three units of 800 MW each. BHEL had emerged as the successful bidder for the project in late 2024. The scope includes design, engineering, manufacturing, supply, erection and commissioning of the plant, along with associated civil and structural works. The contract reflects continued public sector investment in large-scale power infrastructure to support growing energy demand.
Bharat Heavy Electricals Limited has secured a contract valued at approximately INR 13,500 crore from NTPC Limited for the main plant package of the Telangana Stage-II thermal power project, according to a regulatory filing issued in recent days. Advertisement
The order pertains to a 2,400 MW capacity project comprising three units of 800 MW each. The contract was awarded following a competitive bidding process in which BHEL had emerged as the successful bidder in late 2024. The formal notification of award was received by the company in the past week.
The scope of work under the contract includes design, engineering, manufacturing, supply, erection, testing and commissioning of the main plant package. In addition to core power generation infrastructure, the contract also covers associated civil and structural works required for project execution. The order value of INR 13,500 crore is exclusive of applicable taxes.
The Telangana Stage-II project forms part of NTPC's ongoing capacity expansion programme aimed at strengthening thermal power generation to meet rising electricity demand. Large-scale thermal projects continue to play a role in India's energy mix, particularly in supporting base-load requirements alongside the expansion of renewable energy capacity.
For BHEL, the order adds to its existing portfolio of power sector contracts and reinforces its position as a key engineering, procurement and construction (EPC) contractor in the thermal power segment. The company has historically been involved in executing large-scale generation projects for central and state utilities, including supply of boilers, turbines and generators.
The execution of such projects typically involves multiple stages, including equipment manufacturing, on-site construction, installation and commissioning, often over extended timelines. The inclusion of civil and structural components within the scope indicates an integrated approach to project delivery, covering both plant equipment and supporting infrastructure.
From an infrastructure perspective, projects of this scale contribute to industrial activity in the region, including demand for construction services, materials and associated logistics. Thermal power projects also require significant land parcels and supporting infrastructure such as water supply systems, transmission connectivity and access roads, which are developed in parallel with plant construction.
The award highlights continued capital expenditure by public sector utilities in conventional power generation, even as the sector undergoes a transition towards cleaner energy sources. While renewable energy capacity is expanding, thermal power remains critical for ensuring grid stability and meeting peak demand requirements.
The Telangana Stage-II project is expected to contribute to regional power availability once commissioned, supporting industrial and urban consumption needs. The contract underscores ongoing investment in large-scale infrastructure projects as part of India's broader energy and economic development strategy.
Source - PTI
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