BHEL Withdraws Acceptance of LOI for 800 MW Thermal Power Project

BHEL announced that it has withdrawn its earlier acceptance of a Letter of Intent (LOI) received from MB Power (Madhya Pradesh) Limited.

The LOI was related to the supply of key equipment (Boiler, Turbine, Generator) for a 1×800 MW thermal power project in Anuppur

Despite multiple discussions and extensions, the formal contract could not be executed within the agreed timeline, leading to the withdrawal

LOI Background:

• LOI initially accepted on September 3, 2025
• Related to BTG package supply
• Large-scale thermal power project

Reason for Withdrawal:

• Failure to execute formal contract within timeline
• Multiple extensions and discussions did not materialize

Disclosure Update:

• Withdrawal communicated to customer on April 17, 2026
• Official disclosure made under Regulation 30

Business Impact:

• Loss of potential large EPC/order inflow
• May affect order book visibility

Note: LOI does not guarantee revenue unless converted into a firm contract

Key Risks

• Weak conversion of LOIs into firm orders
• Impact on order book growth
• Execution uncertainty in future large projects
• Sectoral slowdown in thermal projects

Worst Case Scenario

Repeated failure in converting LOIs → declining order pipeline and revenue visibility

Risk Level: Medium

• Contract could not be executed within agreed timeline
• Multiple discussions and extensions were undertaken
• Decision taken to withdraw acceptance formally