BHEL wins US$86.4m contract for power station equipment

Indian Government-run Bharat Heavy Electricals Ltd will supply and install Flue Gas Desulphurization (FGD) system at a 2x490 MW National Capital Power Station (NCPS) in Dadri, Uttar Pradesh, run by NTPC Ltd

February 14, 2018

Bharat Heavy Electricals won the contract from NTPC Ltd, a Government-run power generator, after fending off competition from Indian and foreign firms.

The order comes amid an uptick in the demand for emission control equipment in the power sector due to the Government’s more stringent emission norms.

Installation of such technologies at thermal plants have become vital at a time when India is trying to connect every household with electricity by May 2018.

Additionally, BHEL's plan to indigenously manufacture major equipment for emission control provides a boost to the Government’s “Make in India” initiative.

Bharat Heavy Electricals Ltd (BHEL), India’s largest power generation equipment manufacturer, has bagged a contract worth US$86.4 million to supply and install the Flue Gas Desulphurization (FGD) system for the 2×490 MW National Capital Power Station (NCPS) at Dadri in Uttar Pradesh. The Indian Government-run firm won the contract from NTPC Ltd, a state-run power generator, after fending off competition from Indian and foreign companies. Such projects are vital at a time when India is trying to connect every household with electricity by May 2018. This will require the best innovation from both power producers and equipment manufacturers.

The order comes amid an uptick in the ordering of emission control equipment in the Indian power sector due to the revised and more stringent emission norms notified by the Ministry of Environment, Forest and Climate Change in December 2015. The notification calls for installation of equipment to control various harmful emissions, both in existing as well as new thermal power projects. Besides alleviating pollution concerns, this has opened up lucrative opportunities for companies such as BHEL that are prepared to tap the huge market potential and ready to manufacture and supply emission control equipment for Indian thermal power plants.

BHEL had supplied the FGD system at Tata Power’s Trombay plant in 2008 in Maharashtra and is currently installing FGD systems at NTPC’s 3×250 MW Bongaigaon project in Assam. It has also received orders for installation of FGD system at 5×800 MW Yadadri project of Telangana’s state utility and 2×660 MW Maitree project in Bangladesh. With the Dadri order, BHEL has won FGD orders for 13 units till date. Over the past five decades, BHEL has installed over 180 GW of power equipment globally. Additionally, BHEL’s plan to indigenously manufacture major equipment for emission control provides a boost to the Government’s “Make in India” initiative.