BHEL secures Captive Power Plant order from SAIL

Bharat Heavy Electricals Limited (BHEL) has received a Letter of Acceptance (LOA) from Steel Authority of India Limited (SAIL) for setting up a Captive Power Plant (CPP) at the IISCO Steel Plant in Burnpur. The order, valued between Rs 1,200 crore and Rs 1,500 crore excluding GST, adds to BHEL’s order book and is linked to SAIL’s capacity expansion programme.

In a regulatory filing dated February 17, 2026, BHEL informed that it had formally received the LOA from SAIL. The project is part of SAIL’s 4.08 million tonnes per annum (MTPA) crude steel expansion at its IISCO facility in Burnpur.

The contract covers design, engineering, manufacturing, supply, transportation and on-site storage of equipment for the CPP package. It also includes erection, commissioning and performance guarantee testing on a turnkey basis. Civil works are excluded from the scope.

The order was awarded through a global tender process. SAIL, the awarding entity, is a domestic public sector undertaking. The commissioning period is 39 months from the effective date of the contract.

BHEL stated that its promoter, promoter group and group companies do not have any interest in SAIL. The transaction does not qualify as a related party transaction and is undertaken on an arm’s length basis. The company categorised the order as a significant industry order within the disclosed value range.

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