BHEL pulls out of Rs.2,600-crore thermal power contract, withdraws acceptance to letter of intent
- April 18, 2026
Bharat Heavy Electricals Ltd (BHEL) has withdrawn its acceptance to the letter of intent issued with respect to a Rs.2,600-crore thermal power contract in Madhya Pradesh.
In a stock exchange filing, BHEL said that it has withdrawn its acceptance to the letter of intent (LoI) issued by MB Power (Madhya Pradesh) Ltd for supply of main plant BTG (boiler, turbine, generator) package for the 1×800-MW Anuppur thermal power project in Madhya Pradesh.
BHEL, in the filing, added that the LoI was subject to execution of a formal contract within the agreed timeline. However, despite multiple discussions and extensions, the contract could not be executed as per the terms of the LoI, the filing said.
Accordingly, BHEL’s acceptance to the LoI dated September 3, 2025, stands withdrawn, the PSU said, noting that BHEL’s decision has been communicated to the client.
It may be recalled that BHEL on September 3, 2025 announced that it had accepted a letter of intent from MB Power (Madhya Pradesh) Ltd for supply of the BTG package for the upcoming 1×800-MW Anuupur thermal power project.
The order, valued at around Rs.2,600 crore (excluding GST), was scheduled for completion in 58 months.
The boiler and turbine-generator, based on supercritical parameters, were to be manufactured at BHEL’s plants at Trichy (Tamil Nadu) and Haridwar (Uttarakhand), BHEL had then said.
Apart from the BTG package, the order included associated auxiliaries along with control & instrumentation (C&I).
It is independently learnt that MB Power (Madhya Pradesh) Ltd, part of the Hindustan Power Group, is operating a 2×625-MW coal-fired subcritical power plant at Annupur in Madhya Pradesh since April 2016, The BHEL contract under discussion, was related to a capacity expansion programme at the power plant.
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