BHEL secures Rs 13,500 crore NTPC Telangana Stage-II contract

Bharat Heavy Electricals Limited (BHEL) has received a Notification of Award (NOA) from NTPC Limited for the main plant package of the 3×800 MW Telangana Stage-II supercritical thermal power project in Peddapalli district, Telangana. 

The contract is valued at over Rs 13,500 crore, excluding Goods and Services Tax (GST). The NOA was issued on March 29, 2026, following a Limited Notice to Proceed (LNTP) granted in November 2024 for initial engineering work.

Scope and execution timeline

The contract covers design, engineering, manufacturing, supply, erection, commissioning, and testing of the main plant package, including the boiler, turbine, and generator, along with civil and structural works. The execution period is 62 months from the date of the NOA. 

The project was awarded through international competitive bidding, and BHEL stated that the transaction does not fall under related party transactions. The Telangana Stage-II project will add 2,400 MW of capacity through three supercritical units of 800 MW each.

Project Background

The project forms part of NTPC’s expansion of the Telangana Super Thermal Power Station at Ramagundam, where Phase-I (2×800 MW) is already operational. Phase-II will use ultra-supercritical technology and will be developed within the existing plant premises, with an additional 246.858 hectares being acquired for ash dyke construction.

Coal requirement is estimated at around 11.7 million tonnes per annum at 90% plant load factor (PLF), with supply recommended from Singareni Collieries Company Limited (SCCL). Power evacuation will be at 765 kV, aligned with existing infrastructure, and will be interconnected with Phase-I systems for operational flexibility.

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