Bharat Heavy Electricals Limited (BHEL) has received a Letter of Intent (LOI) from Gujarat State Electricity Corporation Limited (GSECL) for an Engineering, Procurement, and Construction (EPC) package of the 1×800 MW Ukai Extension Unit-7 Thermal Power Station in Tapi District, Gujarat.
Key Highlights of the LOI:
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Awarding Entity: Gujarat State Electricity Corporation Limited (GSECL)
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Project Scope:
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Supply of key equipment, including Boiler, Turbine, Generator, and auxiliary systems
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Erection & Commissioning Works
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Civil Construction
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LOI Issued On: March 20, 2025
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Bidding Process: International Competitive Bidding
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Project Timeline: 54 months until commercial operation
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Project Value: ₹7,500 Crore (excluding taxes & duties)
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Promoter Interest: No promoter/promoter group involvement
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Related Party Transaction: Not applicable
This LOI marks a significant step for BHEL in securing large-scale power infrastructure projects and strengthening its portfolio in the thermal power sector. However, it is essential to note that an LOI signifies the intention to award a contract but is not a final work order.
This development reinforces BHEL’s leadership in India’s power generation sector, further contributing to the nation’s energy infrastructure expansion.