Government Maharatna company BHEL has received a big order related to electricity transmission in Gujarat from Power Grid. Its value is between Rs 600 to Rs 900 crore. Shares jumped about 3.5 percent after the news.
Business News: Shares of government Maharatna company Bharat Heavy Electricals Limited (BHEL) saw a good rise on Wednesday, November 11. The company has got the work of a big electricity related project in Gujarat from Power Grid Corporation of India. The estimated value of the order is between Rs 600 to Rs 900 crore. After this information came out, BHEL shares reached Rs 437 during trading. The special thing is that this is the second big order that the company has received from Power Grid in a week.
BHEL shares rose by about 3.5 percent
Good news came for the investors of Bharat Heavy Electricals Limited in the stock market on Wednesday. After the news of the company getting a new order, buying in its shares increased. During trading, BHEL shares jumped nearly 3.5 percent to reach the day's high of Rs 437. However, some softness was also seen at the upper levels.
According to available trading data, at one time the company's shares were trading at Rs 431.60 on the National Stock Exchange (NSE) with a gain of 2.05 percent. This movement in shares was seen at a time when the company informed the stock exchanges about a new project. Investors are keeping an eye on the orders the company is continuously receiving in the market.
BHEL will do power transmission related work in Gujarat
BHEL informed the stock market on Wednesday that it has received Notification of Award (NOA) from Power Grid Corporation of India Limited. Under this, the company will install two synchronous condensers in Kalyanpur, Gujarat. Both will have a capacity of +300/-200 MVAR. This project is related to the arrangement of connecting electricity from Jam Khambhaliya Renewable Energy Zone of Gujarat into the transmission network.
The company will have to do the work of designing, engineering, manufacturing and supplying machines in this project. Apart from this, BHEL will also be responsible for installing, testing and commissioning of the machines. That means the company will handle the entire work from the initial design of the project to the commissioning of the machines.
How much crore is the order and when will the work be completed?
According to BHEL's exchange filing, the estimated value of this order received in Gujarat has been kept between Rs 600 crore to Rs 900 crore. This does not include GST. The company has clarified that 35 months have been fixed to complete the project. It is worth noting here that the company has not yet disclosed any specific amount of the order. At present the value range of Rs 600 to 900 crore has been revealed.
Therefore, it would not be right to directly consider it as a firm contract of Rs 900 crore. This order has been placed by domestic company Power Grid on behalf of its Project Special Purpose Vehicle (SPV) company.
What is synchronous condenser, what is its need in power system?
When the electricity coming from power houses travels long distances to reach cities and villages, it is necessary to maintain the voltage on the way. Many times the voltage starts fluctuating due to increase in demand for electricity or changes in the network. To overcome this problem, synchronous condensers are installed at transmission stations.
It is a big electrical machine, which supplies reactive power to the grid when needed and absorbs it when it is in excess. This helps in controlling the voltage in the electricity network.
Nowadays, a lot of emphasis is being laid on generating electricity from solar and wind energy in the country. But they do not provide the same amount of electricity all the time. Solar plants produce more electricity in bright sunlight, whereas production may decrease when it is cloudy. Similarly, increasing or decreasing wind speed affects wind energy. The strength of the network is also important while connecting such power sources to the grid. Synchronous condenser is useful in this work, as it helps in maintaining the stability of the grid along with handling the voltage.
The same work will be done with both the machines installed in Gujarat. After their commissioning, the voltage in the transmission network can be controlled better. These machines will help in keeping the grid stable especially when there is change in power flow.
BHEL got orders worth up to Rs 900 crore in Rajasthan also
Before Gujarat, BHEL has also got the work of installing synchronous condenser in Rajasthan. The company had given this information on 7 November 2026. This order has been placed by Power Grid for the High-Voltage Direct Current (HVDC) Terminal Station located at Barmer-II. Here the company has to install two synchronous condensers.
The value of this contract in Rajasthan has been estimated to be between Rs 600 crore to Rs 900 crore. BHEL has been given 44 months to complete the work. During this period, work related to supply, installation and commissioning of machines will be completed.