BHEL Secures ₹1,200–1,500 Crore Order for Hindalco’s Odisha Expansion
NEW DELHI – In a significant boost to its industrial order book, state-owned Bharat Heavy Electricals Limited (BHEL) announced on February 4, 2026, that it has received a Letter of Intent (LOI) from Hindalco Industries Limited. The contract is for the Aditya Expansion Project Phase II located in Lapanga, Sambalpur, Odisha.
The order, valued between ₹1,200 crore and ₹1,500 crore (excluding GST), reaffirms BHEL’s dominance in the domestic power equipment manufacturing sector.
Project Scope and Timeline
The contract focuses on the core power generation infrastructure required for Hindalco’s massive aluminium smelter expansion.
- Package Details: Design, engineering, manufacture, supply, erection, and commissioning of a 2 × 150 MW Boiler-Turbine-Generator (BTG) package.
- Exclusions: The contract specifically excludes civil works.
- Execution Deadline: * Unit 1: To be commissioned within 35 months.
- Unit 2: To be commissioned within 37 months
- Performance Guarantee: BHEL will conduct the Performance Acceptance Test (PAT) to ensure the units meet high-efficiency industrial standards.
- Market Reaction: BHEL Shares Surge
- Following the announcement during afternoon trade on Wednesday, BHEL's stock witnessed an immediate positive reaction on the bourses.
Intraday Performance: BHEL shares jumped nearly 1.7% to hit a high of ₹274.00 on the NSE, up from the previous close of ₹267.90.
Investor Sentiment: Analysts at JM Financial and ICICI Securities maintain a "BUY" rating on the stock, citing a robust pipeline of thermal and railway orders.
Market Cap: The company's valuation currently stands at approximately ₹94,800 crore.
Strategic Context: Hindalco’s Odisha Push
This LOI is part of Hindalco's broader ₹21,000 crore expansion of its Aditya Aluminium complex.
- Capacity Boost: The expansion will add 3.6 lakh tonnes per annum to Hindalco's primary aluminium production.
- Integration: The power units supplied by BHEL will provide the steady, high-load electricity required for the smelter and the newly commissioned battery-grade aluminium foil facility, which supports India's burgeoning EV ecosystem.