Business

BHEL bags ₹400-cr. order for IOC unit

Bharat Heavy Electricals Limited (BHEL) on Tuesday said it had bagged a major order for a sulphur recovery unit from Indian Oil Corporation (IOC).

Valued at more than ₹400 crore, the package envisages setting up a 525 TPD sulphur recovery unit at IOC’s Paradip refinery, in Odisha. Stating that it got the order amid stiff international competitive bidding, BHEL said completion of the order would establish it as a lump-sum turn key (LSTK) player for process packages in the downstream oil and gas sector.

“This is a milestone order for BHEL as part of its new growth areas initiative,” a release said. BHEL’s scope in the contract includes project management, residual process design, detailed engineering, procurement, manufacturing, supply, testing, erection, construction, commissioning and performance guarantee test run of the sulphur recovery unit. The project is scheduled for completion in 25 months.

The order is in line with a diversification strategy into non-coal based business areas, which BHEL said, had already started paying dividends. In addition to the thermal power sector, BHEL offers a range of products for major sectors. These include comprehensive solutions for transportation, transmission, renewables, energy storage systems and e-mobility, water management, defence and aerospace, captive power generation and mechanical and electrical industrial products, the release said.

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Printable version | May 18, 2021 2:12:14 AM | https://www.thehindu.com/business/bhel-bags-400-cr-order-for-ioc-unit/article34200934.ece

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