Bharat Heavy Electricals Limited has received a major boost after securing a significant contract from NTPC Limited for the Telangana Stage-II Super Thermal Power Project (STPP). The deal, valued at over ₹13,500 crore (excluding GST), marks one of the largest orders for BHEL in recent times and strengthens its position in India’s power equipment sector.
The Notification of Award (NOA) was issued by NTPC on March 29, 2026, for the main plant package of the 3×800 MW supercritical thermal power project located in Peddapalli district, Telangana.
Project Details and Scope
Under this contract, BHEL will handle the complete execution of the main plant package, which includes design, engineering, manufacturing, supply, erection, commissioning, and testing. The scope also covers critical components such as boilers, turbines, and generators, along with associated civil and structural works.
The project is based on supercritical technology, which is more efficient and environmentally friendly compared to conventional thermal power plants. This aligns with India’s broader push towards improving power generation efficiency.
Timeline and Execution
BHEL is required to complete the project within 62 months from the date of the NOA. The company had earlier emerged as the lowest bidder for this project in October 2024 and received a Limited Notice to Proceed (LNTP) in November 2024, allowing it to begin preliminary engineering work.
Strategic Importance
This order reinforces BHEL’s strong relationship with NTPC, as both entities are Central Public Sector Enterprises (CPSEs). Despite this, the contract does not fall under related party transactions, ensuring it adheres to standard market practices.
The project was awarded through an international competitive bidding process, highlighting BHEL’s competitiveness against global players in the power equipment space.