BHEL Receives EPC Contract Worth Over ₹21,000 Crore for 3×800 MW Meja Supercritical Thermal Power Project Stage-II

Key Metrics:

What Happened ?

Key Details

Meja Stage-II EPC Project Award:

• Awarding entity is Meja Urja Nigam Private Limited (MUNPL).
• MUNPL is a joint venture between NTPC Limited and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL).
• Project relates to Meja Supercritical Thermal Power Project Stage-II.
• Project location is Prayagraj district, Uttar Pradesh.
• EPC package covers complete project execution responsibilities.
• Scope includes design, engineering, manufacturing, supply, construction, erection, testing and commissioning.
• Total generation capacity under the project is 2,400 MW.
• Contract awarded through International Competitive Bidding (ICB).
• Notification of Award received on June 4, 2026.
• Contract value exceeds ₹21,000 crore excluding GST.
• Completion of Facilities (COF) is scheduled within 70 months from the date of award.
• Transaction is not classified as a related-party transaction.
• BHEL is acting solely as the EPC execution agency for the project.

Note:

• The award materially improves BHEL’s order inflow momentum and provides substantial execution visibility over the medium term. The project strengthens BHEL’s participation in India’s ongoing thermal power capacity addition cycle and supports long-duration revenue generation.

Risk Analysis

Summary:

• While the contract materially strengthens BHEL’s order book, execution remains subject to project implementation, construction timelines, supply chain management, and customer-related milestones over the multi-year execution period.

Key Risks:

• Large-scale EPC projects carry execution and timeline risks.
• Cost inflation during the project period may impact margins.
• Delays in regulatory clearances or site readiness could affect schedules.
• Supply chain disruptions may impact equipment delivery timelines.
• Working capital requirements may increase during peak execution phases.
• Revenue recognition will be spread across the project lifecycle.

Worst Case Scenario:

• Significant execution delays, cost overruns, or project schedule extensions could impact profitability and defer revenue realization from the contract.

Company Commentary

• BHEL has received the Notification of Award from MUNPL.
• The order pertains to the EPC package of the 3×800 MW Meja STPP Stage-II project.
• The contract was secured through international competitive bidding.
• The company will undertake complete EPC execution responsibilities.
• Completion of facilities is targeted within 70 months from the award date.
• The transaction does not fall within related-party transactions.