BHEL Secures INR 28,000 Crore Power Project Orders from Adani Power

Adani Power Ltd. awarded Bharat Heavy Electricals Ltd. contracts for equipment delivery totalling up to INR 28,000 crore ($3 billion). Thus, highlighting a rise in expenditure on new capacity by the private sector.

The corporation run by billionaire Gautam Adani placed orders with the state-owned engineering firm for four projects, each involving two 800-megawatt units. There is a value range of INR 5,000 crore to INR 7,000 crore for each deal. As per BHEL, the contracts encompass the provision of boilers, turbines, generators, auxiliary gear, and associated services.

Government Pushing for Investments in Public Sector

Just two days before these orders, India's Finance Minister Nirmala Sitharaman stated that the country will continue to invest in its infrastructure. Roads, bridges, and ports will undergo transformations as a result of these infrastructure expenditures, which will foster economic growth while maintaining fiscal discipline. Until the private sector increases expenditure to grow current operations or construct new capacity, public investment is crucial, according to Sitharaman.

Since fiscal 2015, the allocation of funds for capital expenditures by the government has increased sixfold, reaching INR 2 trillion in the year ending March. Therefore, mirroring the drive for infrastructure expansion by Prime Minister Narendra Modi. The contracts are of a domestic character, as acknowledged by BHEL in its regulatory disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. These deals are not related-party transactions, the corporation said. Also, the awarding organisation, Adani Power, is completely unrelated to or interested in BHEL or its promoters or promoter group entities, according to the submission. The specific requirements of each project will determine the precise contract prices within the disclosed range and the timetables for carrying out the project in detail.

Adani Group Cleared by SEBI

On September 28, the Adani Group chairman Gautam Adani, along with four group firms and thirteen others, were exempted from proceedings that had been initiated by SEBI, the market regulator.

A settlement of INR 1.48 crore was made in response to proceedings that were started due to alleged breaches of minimum public shareholding (MPS) regulations. This clearance extends to the following entities and their respective directors: Adani Enterprises Ltd, Adani Power Ltd, Adani Ports and Special Economic Zone Ltd, and Adani Transmission Ltd, now called Adani Energy Solutions Ltd.

The actions were initiated due to SEBI receiving complaints in June and July 2020 regarding alleged non-compliance with MPS regulations by specific listed Adani Group entities. On October 23, 2020, SEBI began an investigation after a preliminary review. The regulator sent out a show-cause notice (SCN) on September 27, 2024, after the inquiry was finished, and a supplementary SCN on March 3, 2025.