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BHEL Wins Rs. 2,242 Cr. Order for Dibang Hydro Project from NHPC

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Bharat Heavy Electricals Ltd. (BHEL) has secured an order from National Hydro Power Corporation (NHPC) for Electro-Mechanical (E&M) works for the Dibang Hydro project in Arunachal Pradesh. The estimated cost of works in this order is Rs. 2,241.86 crore. BHEL has won this order through International Competitive Bidding.

This information was shared by BHEL in a stock filing dated 4th September 2023.

NHPC & BHEL Sign Two Contracts for Dibang Hydro Power Project’s E&M Order

NHPC and BHEL have signed two contracts pertaining to the aforementioned order. While the first contract entails BHEL supplying the necessary equipment to NHPC on an Ex-works basis, the second contract deals with the services that BHEL will provide NHPC for this project. These services include unloading, storage, installation, testing, and commissioning of the E&M package components.

BHEL’s Scope of Work in the Dibang Hydro Project E&M Order

BHEL will engage in designing, engineering, manufacturing, and supplying of E&M package for the Dibang Hydro project at Roing, the headquarters of the Lower Dibang Valley district of Arunachal Pradesh. Subsequent erection and commissioning of this package will also be carried out by the company. Further, BHEL’s Power Sector – Eastern Region division, Kolkata, will be responsible for on-site execution of this E&M package.

Details of the E&M Package for Dibang Hydro Power Project

E&M works in the Dibang Hydroproject comprise turbines, generator, digital governing system, and static excitation system. Transformers, Gas Insulated Switchgear and Bus Reactors along with Outdoor Pot Yard and Switchyard equipment also fall under the purview of BHEL’s order. Further, BHEL will execute E&M work for Balance of Plant (BoP)** for Dibang Hydropower project’s 12 units of 240 MW each.

This order specifies a completion period of 75 months.

**BoP in a power generation project refers to the auxiliary systems which support the power-generating components of the plant.

BHEL to Manufacture Major Equipment for Dibang Project Domestically

BHEL will manufacture major equipment for to be used in the E&M package of the Dibang Hydroproject domestically at its Bhopal, Jhansi, Rudrapur, and Bengaluru facilities.

BHEL has a Heavy Electrical Plant (HEP) at Bhopal, a Transformer Plant (TP) at Jhansi, and a Component Fabrication Plant (CFP) at Rudrapur. Further, Bengaluru is where BHEL’s Electronics Division (EDN), Electronics Systems Division (ESD), Industrial Systems Group (ISG), and Solar Business Division (SBD) are centred.

Background of the Dibang Hydro Power Project

Dibang Hydroproject, with a capacity of 2,880 MW, is set to be India’s largest hydropower project. The project is expected to be commissioned by 2032. In 2019, the Cabinet Committee on Economic Affairs (CCEA) approved a budget of Rs. 1,600 crore for expenditure on pre-investment activities and clearances for this project. Thereafter in February 2023, NHPC had been accorded an investment approval of Rs. 31,876.39 crore by the Government of India for Dibang Hydro Project.

Work on the project is in progress. In March 2023 NTPC Awarded Rs. 1,622 Cr. Civil Contract to LnT for Dibang Road Projects, and in August 2023, NHPC signed a Memorandum of Understanding (MoU) with Rail India Technical and Economic Service (RITES) for the construction of railway siding for the project.