Bharat Heavy Electricals Limited (BHEL) confirmed the receipt of a Letter of Acceptance (LOA) from Steel Authority of India Limited (SAIL). The contract pertains to the Captive Power Plant (CPP) package for SAIL’s CS expansion at IISCO Steel Plant, Burnpur. This significant industry order is valued between Rs 1200 – Rs 1500 Cr (excluding GST) and involves a turnkey scope covering design, engineering, supply, erection, and commissioning, to be completed within 39 months.
BHEL Receives Major Contract Award
Bharat Heavy Electricals Limited (BHEL) officially announced the receipt of a Letter of Acceptance (LOA) from Steel Authority of India Limited (SAIL) on February 17, 2026. This award relates to the development of a Captive Power Plant (CPP) (Pkg. No. CPP-1), which is part of SAIL’s 4.08 MTPA CS expansion project located at IISCO Steel Plant, Burnpur.
Key Contract Terms and Value
The order constitutes a significant industry order, with an estimated value in the range of Rs 1200 – Rs 1500 Crore, excluding GST. The scope of work is comprehensive, falling under a turnkey basis, and includes Design, Engineering, manufacture, supply, transportation, unloading, storage, erection, commissioning and performance guarantee test for the CPP Package, with civil work being excluded.
The contract was awarded through a Global Tender process and is classified as a domestic entity award. The key performance timeline requires the Commissioning of the CPP Package within 39 Months from the effective date of the contract. Furthermore, BHEL confirmed that this transaction does not fall within the scope of related party transactions.
Source: BSE
