Established in 1964, Bharat Heavy Electricals Limited (BHEL) is India’s leading engineering and manufacturing company, serving vital sectors of the economy for over five decades. It has supplied over 200 GW of power equipment and supported over 1,000 power plants, including 48 per cent of the country’s nuclear and 44 per cent of its hydroelectric capacity. Beyond energy, the company has produced over 800 locomotives, 750,000 MVA of transmission equipment and 34,000 AC machines. BHEL has also been a strategic player in the defence equipment manufacturing segment for over three decades.
Last fiscal, it accounted for 54 per cent of the installed thermal power capacity, 57 per cent of nuclear capacity and 44 per cent of hydropower capacity. BHEL-supplied sets accounted for 58.1 per cent of coal- and lignite-based power generation. The total order inflow in financial year 2023-24 was exceptional for the company, as it reported its highest order inflow. With significant orders in hand for the power generation and transmission segments, BHEL is set to maintain its dominance in the power sector.
Order book and operations overview
BHEL has a strong manufacturing base and can deliver projects up to 20 GW in a year. During 2023-24, it secured orders worth Rs 779.07 billion (excluding taxes), the highest in five years, with the total outstanding order book rising 44 per cent to touch Rs 1,315.98 billion by March 2024. The power sector contributed Rs 556.42 billion, including major orders from NLCIL Talabira and Dibang Hydropower (for electrical and mechanical works). Industry sector orders totalled Rs 219.51 billion.
The surge in orders was attributed to a resurgence in demand for thermal power projects in India. BHEL secured orders for twelve 800 MW units (9.6 GW) during 2023-24, including EPC orders for NTPC’s Lara project, NLC India Limited’s Talabira project, Haryana Power Generation Corporation Limited’s Yamunanagar project, Adani Power Limited’s (APL) Raigarh plant, as well as boiler, turbine and generator orders from Mahan Energen Limited (MEL).
In hydropower, BHEL secured the 2,880 MW Dibang project, India’s largest hydropower project, contributing to its 35,000 MW cumulative hydropower portfolio.
In the first six months of 2024-25, orders worth Rs 410.87 billion were secured, increasing the outstanding order book to over Rs 1,600 billion by September 2024. Power sector orders totalled Rs 383.23 billion, industry sector Rs 26.3 billion and exports Rs 1.34 billion.
BHEL has won major contracts this fiscal, including the 3×800 MW Telangana Stage-II STPP from NTPC for Rs 293.44 billion and the 1×800 MW Sipat Stage-III STPP in Chhattisgarh for over Rs 61 billion. In August 2024, BHEL signed a contract agreement with APL and its subsidiary, MEL to develop three supercritical thermal power projects each with a 2×800 MW capacity. The projects will be located in Kawai, Rajasthan, and Mahan, Madhya Pradesh. The total contract value is over Rs 110 billion, with project completion timelines set at 49 months for Kawai Phase II, 52 months for Kawai Phase III, and 55 months for Mahan Phase III. In June 2024, the company received orders worth over Rs 35 billion each for a 2×800 MW TPP in Raipur, Chhattisgarh, and a similar project in Mirzapur, Uttar Pradesh. Additionally, in August 2024, it secured a contract from the Damodar Valley Corporation for a 2×800 MW STPP in Koderma, Jharkhand.
BHEL has also been involved in several key power transmission projects. It has been associated with major high voltage direct current (HVDC) projects in the country since their inception. Some of these are the Rihand-Dadri, Chandrapur-Padghe, Ballia-Bhiwadi, North East-Agra and Raigarh-Pugalur HVDC links. The company has established manufacturing facilities for HVDC products up to 800 kV. In November 2024, BHEL, in partnership with Hitachi Energy India, secured a significant order for the Khavda-Nagpur 800 kV, 6,000 MW, 1,200 km HVDC transmission project from the Power Grid Corporation of India, set for completion by 2029. The contract involves designing and executing a ±800 kV, 6,000 MW bi-pole and bi-directional HVDC transmission link. This system will transfer renewable energy from the Khavda renewable energy zone, in Gujarat, to Nagpur, in Maharashtra, under Phase V.
On the renewable energy front, BHEL delivered 1.2 GW of solar power projects last fiscal, including 150 MW of floating solar systems. It also commissioned three substations ahead of schedule under the Neemuch renewable energy zone.
The company also manufactures a wide range of critical components for nuclear plants, such as steam generators, reactor headers, end shields, and nuclear turbine generator sets for reactors ranging from 200 MWe to 700 MWe.
In the emission control space, last year, BHEL produced the country’s first catalysts for NOx emission reduction at the Yadadri thermal power station (TPS). It has set up a state-of-the-art SCR catalyst manufacturing facility at its solar business division unit to cater to NOx abatement in TPS. A number of power gencos have placed orders for SCRs with the company; including Telangana State Power Generation Corporation Limited (for the 5×800 MW Yadadri TPS), Maharashtra State Power Generation Company Limited (for the 1×660 MW Bhusawal TPS), West Bengal Power Development Corporation Limited (for the 1×660 MW Sagardighi TPS) and National Aluminium Company Limited (for the 1×18.5 MW Damanjodi TPS).
Financial performance
BHEL reported a strong financial performance in 2023-24, with overall revenue growing by 10 per cent to touch Rs 229.21 billion, up from Rs 221.36 billion in the previous year. Revenue from operations rose 2.26 per cent to Rs 238.93 billion. Annual revenues during 2019-20 to 2023-24 were Rs 204.91 billion, Rs 162.96 billion, Rs 201.53 billion, Rs 221.36 billion and Rs 229.21
billion respectively.
However, profit after tax (PAT) declined 56.88 per cent to Rs 2.82 billion from Rs 6.54 billion, and EBITDA fell 18.19 per cent to Rs 12.01 billion. Capital expenditure stood at Rs 2.87 billion in 2023-24. In the first half of 2024-25, BHEL reduced its net loss to Rs 1.05 billion from Rs 2.68 billion, while the total income grew 17.79 per cent to Rs 122.77 billion, up from Rs 104.23 billion in the same period last year.
Plans and future outlook
BHEL is expected to commission a record 9 GW of thermal power generation capacity in the ongoing financial year, marking the highest annual addition of thermal power capacity in India. This target is more than four times the average annual generation capacity to be commissioned by the company. The total market value of these projects is approximately Rs 650 billion.
Another key project is the 800 MW commercial plant utilising advanced ultra supercritical (AUSC) technology, announced in the Union Budget 2024-25. For this, the government will provide fiscal support to a joint venture (JV) between NTPC Limited and BHEL.
On the coal gasification front, in February 2024, BHEL and Coal India Limited (CIL) signed a JV agreement for setting up an ammonium nitrate plant through surface coal gasification (SCG) technology. The JV company – Bharat Coal Gasification and Chemicals Limited – was incorporated in May 2024. Recently, Bharat Coal Gasification and Chemicals Limited (BCGCL) was awarded Rs 13.50 billion as financial incentive for the project under the Coal Gasification Incentive Scheme. With a total investment of Rs 117.68 billion, the project in Lakhanpur,
Odisha, aims to produce 0.66 mmtpa of ammonium nitrate.
Meanwhile, in March 2024, REC Power Development and Consultancy Limited signed an MoU with BHEL for joint development of utility-scale renewable energy projects across the country through a dedicated special purpose vehicle (SPV). The SPV will focus on catering to the energy requirement of preferably the commercial and industrial segment, with an initial capacity of 1 GW.
In 2023, the company signed an MoU with NPCIL to jointly explore opportunities in pressurised heavy water reactor-based nuclear power plants, strengthening its position in India’s nuclear energy landscape. Notably, in the second quarter of 2024-25, it delivered its 45th steam generator for the Gorakhpur Haryana Anu Vidyut Pariyojana nuclear power plant.
Further, BHEL has signed a technical assistance and licence agreement with General Electric Technology GmbH Switzerland to cater to the gas turbine market. It has also developed processes for producing methanol from coal and dimethyl ether from methanol to enhance energy self-reliance by utilising domestic coal resources.
Additionally, BHEL is actively bidding to secure HVDC projects in the transmission domain and has entered strategic agreements in emerging areas such as railway signalling and electrolyser manufacturing. It is advancing critical technologies, including advanced ultra supercritical systems, propulsion solutions for high-speed and semi-high speed trains, high-power locomotives, strategic defence equipment and space application batteries.
BHEL is progressing ahead with Industry 4.0 initiatives such as remote monitoring and diagnostic services, remote vibration and diagnostic systems, and plant automation and live monitoring (PALM). The firm has successfully implemented its first PALM solution at the 1×25 MW NEEPCO-Khandong HEP in Assam. Further, BHEL has secured another order from NHPC for PALM implementation at seven of its power stations. The Harit BHEL initiative, launched in 2023-24, targets net zero emissions by 2047.
Overall, BHEL continues to solidify its position as a leader in India’s power and engineering sectors. From expanding its renewable energy footprint and enhancing its expertise in international projects to pioneering advanced emission control technologies and securing significant domestic and international contracts, the company has demonstrated resilience and adaptability. Its strategic initiatives, such as entering the coal gasification sector and adopting cutting-edge technologies, reflect a forward-thinking approach aimed at fostering sustainability and energy self-reliance.