BHEL Files ₹542 Crore Lawsuit Against KPCL: Key Details & Market Impact

By csvt4256

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Power Sector Showdown: BHEL Takes Legal Action for Unpaid Dues

In a significant development, Bharat Heavy Electricals Limited (BHEL) has filed a commercial lawsuit against Karnataka Power Corporation Limited (KPCL) to recover ₹542.14 crore in pending payments. The case, filed before the Bangalore City Civil and Sessions Judge, relates to an Engineering, Procurement & Construction (EPC) contract for Bellary Thermal Power Station’s unit.

Why This Legal Battle Matters

AspectDetails
Dispute Amount₹542.14 crore
Project InvolvedBellary Thermal Power Station (Unit)
Contract TypeEPC (Engineering, Procurement, Construction)
CourtBangalore City Civil & Sessions Court
BHEL’s StanceSeeking recovery of dues for executed work

🔹 Key Implications:

  • BHEL is protecting its financial interests amid delayed payments.

  • The outcome could impact future power sector contracts in India.

  • Investors are closely watching the case’s progress.


BHEL’s Stock Performance: Recent Surge Despite Legal Battle

Share Price Movement (As of March 28, 2025)

MetricPerformance
Current Price (BSE)₹216.05
1-Day Gain+1%
1-Month Rally+20%
6-Month TrendDown 24%
Market Cap₹75,200 crore

📈 What’s Driving the Rally?

  • Recent ₹11,800 crore order from Chhattisgarh State Power Generation Co. (CSPGCL) for a 2×660 MW supercritical thermal plant.

  • Strong government backing in power sector projects.

  • Speculation around new contracts in renewable energy.


Recent Major Order: ₹11,800 Crore Project from CSPGCL

Project Highlights

ParameterDetails
ClientChhattisgarh State Power Generation Co. (CSPGCL)
LocationKorba West, Chhattisgarh
ScopeEPC for 2×660 MW supercritical thermal plant
ComponentsBoilers, turbines, generators, civil works
Timeline60 months (5 years)
Order Value₹11,800 crore

💡 Why This Order is Significant:

  • Strengthens BHEL’s position in supercritical power technology.

  • Boosts order book amid slowdown in thermal power projects.

  • Could lead to more state-government contracts.


Investor Takeaway: What to Watch Next

✅ Legal Case Outcome – Will KPCL settle or fight in court?
✅ Execution of ₹11,800 Cr Order – Timely completion critical for stock momentum.
✅ New Tenders – More orders in thermal/renewable sectors expected.
✅ Debt Recovery – Successful ₹542 Cr recovery could improve financials.