Bharat Heavy Electricals Limited has been awarded a letter of intent (LOI) by Damodar Valley Corporation (DVC) for the establishment of a 2×800 MW thermal power station in Koderma district, Jharkhand.

What Happened: BHEL made the announcement on Friday, stating that the LOI is for the construction of the Koderma Phase-II Thermal Power Station on an EPC (Engineering, Procurement, and Construction) basis. “We are pleased to announce that we have received a Letter of Intent from Damodar Valley Corporation for setting up the 2×800 MW Koderma Phase-II Thermal Power Station,” the company said in an exchange filing.

The contract, valued at over ₹10,000 crore, excluding taxes and duties, includes the supply of equipment such as boilers, turbines, generators, and associated auxiliaries. It also covers electrical and C&I, Balance of Plant packages, erection and commissioning, and civil works.

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The project, awarded through international competitive bidding, is expected to be completed within 52 months. The contract does not involve any related party transactions, and neither the promoter nor the promoter group or group companies have any interest in DVC.

Earlier this week, Finance Minister Nirmala Sitharaman announced a joint venture between BHEL and NTPC to set up a full-scale 800-megawatt commercial thermal plant using AUSC (Advanced Ultra Supercritical) technology. This technology is expected to help the country reduce its carbon footprint.

This development comes in the wake of the Indian government’s push for power companies to invest in equipment. The proposed investment, amounting to $33 billion (₹2.75 lakh crore), was aimed at boosting the country's coal power output for the year.

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