Bharat Heavy Electricals Limited (BHEL) has announced the receipt of a Letter of Acceptance (LOA) from Steel Authority of India Limited (SAIL) for executing a captive power plant package at SAIL’s IISCO Steel Plant in Burnpur.
The order represents a sizeable domestic industrial contract and strengthens BHEL’s presence in the power equipment and engineering segment.
The LOA, received on 17 February 2026, relates to the Captive Power Plant (CPP-1 package) associated with SAIL’s 4.08 million tonnes per annum crude steel expansion project at its IISCO Steel Plant.
The contract has been awarded through a global tender process by SAIL, a domestic entity. The project will be executed on a turnkey basis, excluding civil works.
Under the agreement, BHEL will undertake the following responsibilities:
The comprehensive scope highlights BHEL’s integrated engineering, procurement and construction (EPC) capabilities within the industrial power segment.
The commissioning of the captive power plant package is scheduled to be completed within 39 months from the effective date of the contract.
The order is classified as a significant industry contract, with an estimated value ranging between ₹1,200 crore and ₹1,500 crore, excluding GST.
Following the development, shares of Bharat Heavy Electricals Limited (BHEL) were trading at ₹263.75, up ₹0.95 or 0.36%, compared with the previous close of ₹262.80. During early trade, the stock touched a high of ₹265.90.
Meanwhile, shares of Steel Authority of India Limited (SAIL) were trading at ₹159.69, gaining ₹2.42 or 1.54%, after opening at ₹157.51 and hitting an intraday high of ₹159.69.
The order from SAIL adds to BHEL’s project pipeline in the industrial and captive power segment and reflects continued capital expenditure activity within India’s steel sector. The project is expected to support operational efficiency at the IISCO Steel Plant while reinforcing BHEL’s role in large scale engineering and power infrastructure projects.
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Published on: Feb 18, 2026, 9:34 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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