Bharat Heavy Electricals Ltd. (BHEL) has secured an EPC order valued at over Rs. 15,000 crore for developing Stage-1 of Neyveli Lignite Corporation’s (NLC or NLC India) Talabira Ultra-Supercritical Thermal Power Project* in Odisha. This information was conveyed by the companies’ respective stock filings dated 12th January 2024.
*An ultra-supercritical thermal power plant makes use of steam at a temperature of about 600 degrees Celsius and at a pressure of about 240 bar. This leads to optimal fuel usage by generating more energy per unit of fuel used.
Talabira Ultra-Supercritical Thermal Plant to be Developed in 2 Stages
NLC’s Talabira Ultra-Supercritical Thermal Power Plant will sprawl over an area of about 890 acre, and have a total power generation capacity of 3,200 MW which will be developed in 2 stages.
Stage-1 of the plant will comprise three units of 800 MW each and is expected to be commissioned in the 2028-29 financial year.
BHEL’s Scope of Work as per the Secured NLC Talabira Stage 1 Order
BHEL’s scope of work in this project entails engineering, manufacturing, supply, installation, and commissioning of equipment at NLC’s Talabira Thermal Plant (Stage-1). This equipment comprises turbines, boilers, Flue Gas Desulphurisation (FGD), and Selective Catalytic Reduction (SCR) installations with associated electrical works. Apart from this, BHEL will also execute civil work and Balance of Plant packages for Stage-1 of the Talabira Ultra-Supercritical Thermal Plant.
“Major equipment will be manufactured at BHEL’s Trichy, Haridwar, Hyderabad, Jhansi, Bengaluru, Ranipet, Bhopal, Rudrapur, Varanasi plants“, stated BHEL’s filing.
Coal Linkages with NLC’s Talabira II & III Mines, Water to be Sourced from Hirakud
NLC’s Talabira Thermal Power Plant will source its coal from Neyveli Lignite’s Talabira II and Talabira III Open Cast Project (OCP) mines located in Jharsuguda and Sambalpur in Odisha.
Moreover, water requirements for this plant will be fulfilled by the Hirakud reservoir.
PPAs Already Signed for Power to be Generated from Stage-1 of Talabira Plant
Further, NLC has signed Power Purchase Agreements (PPAs) with Tamil Nadu, Puducherry, Odisha, and Kerala for the entire power generated from Stage-1 of the plant, which is 2,400 MW. This power shall be evacuated using Inter-State Transmission System (ISTS) and State Transmission Utility (STU) networks.
BHEL Sole Bidder for NLC’s Project
Mr. Prasanna Kumar Motupalli, CMD of NLC India, had earlier told Moneycontrol as per a report dated 2nd January 2024, that BHEL was the sole bidder for Phase-1 of the Talabira Thermal Power project.
“Initially, two parties – L&T-MHI and BHEL – had participated in the bidding process. But finally, in the price bid only BHEL participated. We are not aware of any specific reason for L&T backing out. So, we have received the bid submissions of BHEL…”, he clarified.
BHEL Stock Gains over 2% After Securing Talabira EPC Order
BHEL’s stock prices surged by 2.44% after it announced its order win. The company’s share price stood at Rs. 196.45 apiece on 12th January 2024, which rose to Rs. 201.25 apiece on the next trading day, that is 15th January 2024.
Moreover, the volume of BHEL’s share trades grew to 3,93,62,000 trades on 15th January 2024 from 1,43,84,000 trades on 12th January 2024. This reflects growth of volume of trades to almost three times (2.74 times) its previous value since the announcement of this order win.