Advertisement
Psu

BHEL Secures ₹5,400 Crore Order for Coal Gasification Project in Odisha

BHEL secures a ₹5,400 crore order from BCGCL for Coal Gasification & Raw Syngas Cleaning Plant in Odisha. Project includes design, engineering, supply, construction, and 5-year O&M services.
BHEL Secures ₹5,400 Crore Order for Coal Gasification Project in Odisha

New Delhi, January 8, 2026: Bharat Heavy Electricals Limited (BHEL) has announced that it has received a significant order from Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture between BHEL (49%) and Coal India Limited (51%).

The order, valued at approximately ₹5,400 crore (excluding GST), pertains to the design, engineering, supply of equipment, civil works, erection, commissioning, and operation & maintenance (O&M) of the Coal Gasification & Raw Syngas Cleaning Plant (LSTK 1 Package) of BCGCL’s Coal-to-Ammonium Nitrate Project at Lakhanpur in Jharsuguda District, Odisha.

Under the terms of the contract, the preliminary acceptance, including commissioning and performance guarantee tests, is expected to be completed within 42 months from the date of the Letter of Acceptance (LOA). The O&M services for the plant will be provided for 60 months following preliminary acceptance.

 

Advertisement

Since BHEL is a promoter of BCGCL and also the executing agency for this project, the contract qualifies as a related party transaction. The company has clarified that the transaction has been executed at arm’s length.

BHEL’s receipt of this order underscores its continued leadership in executing large-scale domestic energy and infrastructure projects and reinforces its strategic collaboration with Coal India Limited through BCGCL.

Advertisement

Bharat Heavy Electricals Limited (BHEL) is India’s largest government-owned engineering and manufacturing enterprise, specializing in integrated power plant equipment and core infrastructure solutions. As a leading Maharatna PSU, it drives national energy security through advanced technologies in thermal, hydro, nuclear, and renewable energy sectors. 

  • Core Strength: Dominates India's utility power segment with a 55% market share and a global footprint spanning over 80 countries.
  • Diverse Portfolio: Provides critical systems for defense, aerospace, and transportation, including space-grade batteries for ISRO and locomotives for Indian Railways.
Advertisement