BHEL gains 7% on emerging lowest bidder for NPCIL's Rs 10,800 cr tender

The company has emerged as lowest bidder for tender worth Rs 10,800 crore for fleet mode tender floated by Nuclear Power Corporation of India (NPCIL) for the 6x700 MW Turbine Island Package Projects.

Shares of Bharat Heavy Electricals Limited (BHEL) rallied 7 per cent to Rs 53.80 on the BSE in intra-day trade on Thursday after the company said it has emerged as the lowest bidder at Rs 10,800 crore for fleet mode tender floated by Nuclear Power Corporation of India (NPCIL) for its 6x700 MW Turbine Island Package Projects.

Notably, PHWRs (Pressurised Heavy Water Reactors) are the mainstay of the Indian Nuclear Power Programme and 12 out of 18 operating PHWRs of NPCIL are equipped with BHEL-supplied Steam Turbine Generator sets (10x220 MWe + 2x540 MWe) with the balance from Canada and Ukraine. These sets have continuously been exhibiting excellent performance with Kaiga Unit -1 creating a world record of uninterrupted operation for 962 days, BHEL said in an exchange filing.

Additionally, BHEL has already supplied 2x700 MWe Steam Turbine Generator sets each for Kakrapar Atomic Power Plant (Unit 3&4) and Rawatbhata Atomic Power Plant (Unit 7&8).

BHEL has been a reliable supplier of critical equipment and services for India’s Nuclear Programme for many decades with specialised manufacturing facilities and capabilities already set up. The company aims to continue making a major contribution towards self-reliance in nuclear equipment production and initiatives taken will be a driving force towards the AatmaNirbhar Bharat Abhiyan of Government of India, it said.

BHEL has won orders worth around Rs 9,100 crore for the April-December period (9MFY21). Further, this large nuclear order would aid BHEL's order intake for FY21E despite the challenging environment in the power sector. Significantly, with this, BHEL has retained its market leadership position of being the sole Indian supplier of nuclear steam turbines. However, recent execution headwinds in the power segment due to various issues leading to project delays and working capital stress are major near term challenges and need to be resolved quickly to recover reduced revenue amid pandemic, ICICI Securities said in a note.

At 09:23 am, BHEL was trading 6 per cent higher at Rs 53.10 on the BSE as against a 0.85 per cent rise in the S&P BSE Sensex. A combined 24.1 million equity shares have changed hands on the counter on the NSE and BSE so far. The stock hit a 52-week high of Rs 56.50 on March 9.