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BHEL Secures ₹7,500 Crore LOI from GSECL for 800 MW Power Project

BHEL Secures ₹7,500 Crore LOI from GSECL for 800 MW Power Project

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:

  • Awarding Entity: Gujarat State Electricity Corporation Limited (GSECL)

  • Project Scope:

    • Supply of key equipment, including Boiler, Turbine, Generator, and auxiliary systems

    • Erection & Commissioning Works

    • Civil Construction

  • LOI Issued On: March 20, 2025

  • Bidding Process: International Competitive Bidding

  • Project Timeline: 54 months until commercial operation

  • Project Value: ₹7,500 Crore (excluding taxes & duties)

  • Promoter Interest: No promoter/promoter group involvement

  • 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.

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