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
| Aspect | Details |
|---|---|
| Dispute Amount | ₹542.14 crore |
| Project Involved | Bellary Thermal Power Station (Unit) |
| Contract Type | EPC (Engineering, Procurement, Construction) |
| Court | Bangalore City Civil & Sessions Court |
| BHEL’s Stance | Seeking recovery of dues for executed work |
🔹 Key Implications:
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BHEL is protecting its financial interests amid delayed payments.
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The outcome could impact future power sector contracts in India.
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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)
| Metric | Performance |
|---|---|
| Current Price (BSE) | ₹216.05 |
| 1-Day Gain | +1% |
| 1-Month Rally | +20% |
| 6-Month Trend | Down 24% |
| Market Cap | ₹75,200 crore |
📈 What’s Driving the Rally?
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Recent ₹11,800 crore order from Chhattisgarh State Power Generation Co. (CSPGCL) for a 2×660 MW supercritical thermal plant.
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Strong government backing in power sector projects.
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Speculation around new contracts in renewable energy.
Recent Major Order: ₹11,800 Crore Project from CSPGCL
Project Highlights
| Parameter | Details |
|---|---|
| Client | Chhattisgarh State Power Generation Co. (CSPGCL) |
| Location | Korba West, Chhattisgarh |
| Scope | EPC for 2×660 MW supercritical thermal plant |
| Components | Boilers, turbines, generators, civil works |
| Timeline | 60 months (5 years) |
| Order Value | ₹11,800 crore |
💡 Why This Order is Significant:
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Strengthens BHEL’s position in supercritical power technology.
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Boosts order book amid slowdown in thermal power projects.
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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.
