New Delhi: Bharat Heavy Electricals Limited (BHEL) has withdrawn its acceptance of a Letter of Intent (LOI) issued by MB Power (Madhya Pradesh) Limited for the supply of key equipment for the 1×800 MW Anuppur Thermal Power Project. The development marks a setback in the proposed contract for supplying critical power generation equipment.
Background of the Anuppur Thermal Power Project Deal
Earlier, BHEL had accepted the LOI issued by MB Power for the project, which involved a major engineering procurement scope. The proposed contract included the supply of Boiler, Turbine, and Generator (BTG) equipment—core components for thermal power plant operations.
However, the acceptance was conditional upon the execution of a formal contract within a defined timeline.
Contract Could Not Be Finalised Despite Extensions
According to BHEL, the parties engaged in multiple rounds of discussions and were granted extensions to complete the formal agreement. Despite these efforts, the contract could not be finalized in line with the agreed terms and timeline requirements.
As a result, the company decided to withdraw its acceptance of the LOI.
Official Withdrawal and Communication Timeline
BHEL confirmed in its regulatory filing that:
- The LOI acceptance was originally made on September 3, 2025
- The contract was not executed within the stipulated timeline
- The acceptance of the LOI was withdrawn on April 17, 2026
- MB Power was formally informed at 16:36 hours on the same day
Regulatory Compliance Under SEBI LODR
The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation requires listed companies to inform stock exchanges about material developments that may impact business operations or investor interest.
Impact on the Project
The withdrawal indicates that:
- No binding contract currently exists between BHEL and MB Power for this project
- The proposed supply of BTG equipment will not proceed under the earlier LOI
- The project agreement remains incomplete due to procedural and contractual delays
About BHEL
Bharat Heavy Electricals Limited (BHEL) is a leading Indian public sector engineering and manufacturing company engaged in designing and supplying equipment for power generation and infrastructure sectors. The company plays a key role in India’s thermal, hydro, and industrial power projects, particularly in supplying critical systems like boilers, turbines, and generators.
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