Bharat Heavy Electricals Limited (BHEL) has accepted a Letter of Intent from MB Power, Madhya Pradesh, for the supply of boiler, turbine, and generator for the 800 MW Anuppur Thermal Power Project.
In an exchange filing, the public sector company said that the estimated value of the order is about Rs 2,600 crore, excluding GST. Along with the boiler, turbine and generator, BHEL will also supply associated auxiliaries, controls and instrumentation.
BHEL will execute the order in 58 months. Further, BHEL added that the boiler, turbine and generator will be manufactured at its manufacturing plants at Trichy and Haridwar.
Favourable order on tax notice
Earlier, on September 2, BHEL got relief from the CGST Commissioner Dehradun on a Rs 31.2 crore tax notice. The company had received a Rs 31.20 crore GST notice in a matter of GST evasion.
After receiving the notice, the company appealed against the show cause notice of the Joint Commissioner to the higher authorities. After the appeal, the CGST Commissioner Dehradun ruled in favour of BHEL, dropping the show cause notice, and gave a decision in favour of the company.
BSE, NSE penalise BHEL
On September 1, stock exchanges BSE and NSE imposed a penalty of Rs 5,36,900 each on BHEL. The penalty from the stock exchanges came after the company failed to appoint independent directors, as required by the legal framework.
BHEL is a state-owned company, and the appointment of directors and independent directors comes from the central government.
“For the quarter ending June 2025 pertaining to the composition of Board of Directors, the number of Independent Directors was less than 50 per cent of the actual strength of BHEL’s Board,” the company said in a statement.
The company has sought a waiver on the penalty imposed by the Bombay Stock Exchange and the National Stock Exchange.