State-run Bharat Heavy Electricals Ltd (BHEL) has secured a Letter of Acceptance (LoA) from Steel Authority of India Limited (SAIL) for a captive power plant at its IISCO Steel Plant in Burnpur, West Bengal.
The LoA, received on February 17, 2026, relates to the Captive Power Plant (CPP) package (Pkg. No. CPP-1) for SAIL’s 4.08 million tonnes per annum crude steel expansion project at Burnpur.
The order, awarded by a domestic entity through a global tender route, is valued in the range of ₹1,200 crore to ₹1,500 crore, excluding GST.
Under the turnkey contract, BHEL will undertake design, engineering, manufacturing, supply, transportation, unloading, storage, erection, commissioning and performance guarantee testing of the CPP package. Civil works are excluded from the scope of the contract. The project is slated for commissioning within 39 months from the effective date of the contract.
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Separately, last week, the Offer for Sale (OFS) in BHEL was subscribed 2.3 times on the first day on February 11. Against 9.4 crore shares on offer, bids were received for more than 22 crore shares.
Institutional investors placed bids worth over ₹5,650 crore, taking the issue to more than two times subscription on Day 1. Following the strong response, the government decided to exercise the green shoe option and put the entire 5% stake on the block.
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Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said the OFS saw robust participation and was oversubscribed 2.3 times on the first day. Retail investors and employees were scheduled to bid on February 12, 2026.
Shares of Bharat Heavy Electricals Ltd ended marginally higher on Tuesday, February 17, by 0.11% at ₹262.80 on the NSE.
