Bharat Heavy Electricals Limited (BHEL) has confirmed the receipt of a Letter of Acceptance (LOA) from Steel Authority of India Limited (SAIL) for a Captive Power Plant (CPP) package associated with SAIL’s crude steel expansion at the IISCO Steel Plant. The order is classified as a significant industry contract, valued in the range of Rs 1,200–1,500 crore, excluding GST, and is to be executed on a turnkey basis within a stipulated timeline of 39 months.
The LOA, received on Tuesday, pertains to CPP Package No. CPP-1 under SAIL’s 4.08 million tonnes per annum crude steel expansion project at the Burnpur facility. The project forms a key part of SAIL’s capacity augmentation plans.
Under the scope of the contract, BHEL will be responsible for design, engineering, manufacture, supply, transportation, unloading, storage, erection, commissioning, and performance guarantee testing of the CPP package. Civil works are excluded from the scope. The project has been awarded through a global tender process and is categorized as a domestic entity award.
BHEL further stated that the commissioning of the CPP package is to be completed within 39 months of the contract’s effective date. The company also clarified that the transaction is not a related party transaction.
