BHEL wins Rs 2,800 crore syngas purification plant order in Odisha

Bharat Heavy Electricals Limited (BHEL) has received a Letter of Acceptance (LoA) for a contract valued at approximately Rs 2,800 crore from Bharat Coal Gasification and Chemicals Limited (BCGCL). The order is for a syngas purification plant for a coal-to-ammonium nitrate project in Odisha.

The contract was awarded on February 10, 2026. It covers the design, engineering, supply, construction and commissioning of the Syngas Purification Plant under the Lump Sum Turnkey (LSTK) 2 Package for BCGCL’s project at Lakhanpur in Jharsuguda district, Odisha. BHEL will also provide operation and maintenance services for 60 months after commissioning.

BCGCL is a joint venture between Coal India Limited, which holds a 51% stake, and BHEL, which holds 49%. The company has classified the order as a related-party transaction and stated that it has been executed on an arm’s length basis in line with applicable regulatory requirements.

Under the contract terms, BHEL is required to achieve preliminary acceptance, including commissioning and performance guarantee tests, within 42 months from the date of the Letter of Acceptance. The contract value of approximately Rs 2,800 crore excludes applicable customs duties and GST.