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Shares of Bharat Heavy Electricals Limited (BHEL) traded higher on Friday after the state-owned engineering and power equipment manufacturer secured a massive thermal power project contract worth more than ₹21,000 crore from Meja Urja Nigam Pvt. Ltd. (MUNPL). The announcement boosted investor sentiment, helping the stock gain nearly 3% during intraday trade before trimming some of its gains.
As of 12:58 PM IST on June 5, BHEL shares touched an intraday high of ₹400.35 against the previous close of ₹389.20. The stock opened at ₹390.00 and traded between ₹382.60 and ₹400.35 during the session. Trading activity remained strong, with more than 1.31 crore shares changing hands. The stock is currently trading not far from its 52-week high of ₹424.90, while its 52-week low stands at ₹205.12.
In a regulatory filing, BHEL informed exchanges that it has received a Notification of Award (NOA) from Meja Urja Nigam Pvt. Ltd. for the Engineering, Procurement and Construction (EPC) package of the 3x800 MW Meja Super Thermal Power Project (STPP) Stage-II in Uttar Pradesh. The company received the award on June 4, 2026.
MUNPL is a joint venture between NTPC Limited and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited. The project was awarded through an international competitive bidding process, reflecting the scale and significance of the contract for BHEL.
The EPC package is valued at more than ₹21,000 crore, excluding GST, making it one of the largest infrastructure orders secured by the company in recent years. Under the agreement, BHEL will undertake the complete design, engineering, manufacturing, supply, construction, erection, testing and commissioning of the thermal power project.
The Meja Stage-II project will consist of three supercritical thermal power units of 800 MW each, creating a total installed capacity of 2,400 MW. The project is expected to strengthen power generation capacity in Uttar Pradesh and help meet the state's growing electricity demand. Supercritical technology is considered more efficient than conventional thermal power systems as it improves fuel efficiency and reduces emissions per unit of electricity generated.
According to the contract terms, the Completion of Facilities (COF) for the project is scheduled within 70 months from the date of the Notification of Award. Given its size and strategic importance, the project is expected to provide long-term revenue visibility for BHEL while reinforcing its position as a leading player in India's power equipment and engineering sector.
The company also clarified that the transaction does not fall under related-party transaction norms. While MUNPL is jointly owned by NTPC and UPRVUNL, BHEL stated that there is no promoter or promoter-group interest involved in the awarding entity that would classify the contract as a related-party deal.
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