Author: PPD Team Date: 12/02/2025
Bharat Heavy Electricals Ltd (BHEL) has received a letter of intent (LoI) from Damodar Valley Corporation (DVC) for a Rs 62 billion contract related to the steam generator island package for DVC’s 2×660-MW Raghunathpur thermal power station (Phase-II) in Purulia district, West Bengal.
The contract was awarded through an international competitive bidding process and includes the supply, erection, testing, and commissioning of steam generators, auxiliaries, electrostatic precipitators (ESP), flue gas desulphurization (FGD) systems, ash handling systems, and electrical and control & instrumentation (C&I) works. Additionally, it covers associated civil works.
The first unit is expected to be supplied within 48 months, with the second unit following four months later. This project forms part of the Phase-II expansion of the Raghunathpur Thermal Power Plant.
The coal requirement will be sourced from Jharkhand and Eastern Coalfields Limited (ECL) and Central Coalfields Limited (CCL). The annual coal requirement at 90% plant load factor (PLF) is estimated to be 7.54 million tonnes. Water for the project will be sourced from the Damodar River, with an estimated requirement of 40.3 million cubic meters.
Power generated will be divided among West Bengal State Electricity Distribution Company Limited (WBSEDCL), Steel Authority of India, Tata Steel, Jindal Power & Steel, Electro Steel Castings, and Adhunik Steels. Two 400 kV transmission lines will evacuate the power to WBSEDCL and Raghunathpur substation.
The financing for the project includes a loan agreement with the Rural Electrification Corporation Limited (REC) for Rs 63,620 million. The remaining equity portion will be funded through internal accruals. DVC signed a loan agreement with REC for Rs 45.27 billion on August 26, 2023.