BHEL forays into Lump-sum Turn Key (LSTK) business of Process Package for Downstream Oil & Gas Sector

Against stiff international competitive bidding (ICB), Bharat Heavy Electricals Limited (BHEL) has bagged a major order for a Sulphur Recovery Unit from IOCL.

Significantly, with this order, BHEL has made an entry into the downstream oil & gas process package business. The package, valued at over Rs.400 Crore, envisages setting up a 525 TPD Sulphur Recovery Unit at IOCL's Paradip Refinery in Odisha

Notably, the company's diversification strategy into non-coal based business areas has begun paying dividends and this is a milestone order for BHEL as part of its new growth areas initiative. With the execution of this order, BHEL will establish itself as an LSTK player for process packages in the downstream oil & gas sector.

BHEL's scope in the contract includes project management, residual process design, detailed engineering, procurement, manufacturing, supply, testing, erection, construction, commissioning and performance guarantee test run of the 525 TPD Sulphur Recovery Unit. The project is scheduled for completion in 25 months.

In addition to the thermal power sector, BHEL offers a broad range of products for major sectors of the Indian economy. With focus on growth of non-coal based business, the company offers comprehensive' solutions for transportation, transmission, renewables, energy storage systems and emobility, water management, defence & aerospace, captive power generation and mechanical & electrical industrial products.

Shares of BHARAT HEAVY ELECTRICALS LTD. was last trading in BSE at Rs.48.7 as compared to the previous close of Rs. 48.2. The total number of shares traded during the day was 2900469 in over 4870 trades.

The stock hit an intraday high of Rs. 49.5 and intraday low of 48.45. The net turnover during the day was Rs. 141948793.

Source : Equity Bulls

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