- 22 Oct 2024
- ICICI Securities
L&T HAS OUTBID BHEL FOR CONTRACTS
News: Larsen & Toubro (L&T) has outbid Bharat Heavy Electricals Limited (BHEL) for contracts worth over ₹40,000 crore floated by NTPC to set up three coal-fired power plants, in an indication of resurgence of private sector interest in the thermal power sector. NTPC had invited bids on bulk tender basis for three super thermal power projects (STPPs) in August this year. In all, NTPC called bids for 6.4 GW of additional coal-fired power generation capacity in this round. These projects were Gadarwara STPP stage-II (in Madhya Pradesh), Telangana STPP stage-II and Nabinagar STPP stage-II (in Bihar) with the scope of work including design, engineering, manufacture, supply, construction, erection, testing and commissioning works for the main plant package based on single point responsibility.
Views: Given the order pertains to main EPC of main plant, the per mw cost works out to Rs 6.8 crore per mw. The order will help the company to achieve its order inflow guidance for FY25.
Impact: Positive