InvestorQ : Can you tell me about the recent order received by BHEL from Indian Oil?
Angel dcosta made post

Can you tell me about the recent order received by BHEL from Indian Oil?

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Juvina Maggie answered.
8 months ago
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Bharat Heavy Electricals or BHEL has bagged an important order for designing and executing a sulphur recovery unit for Indian Oil Corporation or IOCL. This order was won by BHEL in the face of stiff competition from international bidders. The order is worth Rs.400 crore and may sound small if you look at the average orders of BHEL and IOCL but what cannot be missed out is the significance of this order for BHEL from a positioning perspective.

That is because, this order marks the entry of BHEL into the downstream oil and gas process package business. But more important than that, it reduces its reliance on coal-based businesses. BHEL has spent a better part of the last made decades supplying predominantly to the thermal power sector. Now this marks a change in gear to the midstream and downstream refining and marketing companies like IOCL.

The order value of Rs.400 crore entails setting up a 525 tonnes per day or TPD Sulphur Recovery Unit at the Paradip Refinery in the state of Odisha. The Paradip Refiner is owned and operated by IOCL. The scope of work of the current project includes project management, residual process design, detailed engineering, procurement, manufacturing, supply, testing, erection, construction and commissioning.

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