BHEL stock gains 2% on securing Rs 2,956 crore contract

Shares of Bharat Heavy Electricals Limited gained over 2 percent to Rs 160, rallying for the fifth consecutive trading session after the Defense Ministry sealed a deal with the company to procure 16 upgraded super rapid gun mount (SRGM) and accessories for Indian Navy.

The ministry said the upgraded SRGMs will be installed onboard the Indian Navy’s in-service and newly built ships. “The Ministry of Defence has signed a contract with Bharat Heavy Electricals Limited (BHEL), Haridwar on November 28 for procurement of SRGM along with associated equipment and accessories for Indian Navy” it said in a statement.

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The SRGMs will be manufactured in BHEL’s Haridwar plant. “The weapon system is capable of multiple engagements in multi-threat scenarios and has a proven record of very good performance against missiles and highly manoeuvrable fast attack crafts,” the ministry said.

Furthermore, the company has also signed a Memorandum of Cooperation with Electricité de France S.A., France (EDF), a French state-owned company and the largest nuclear operator worldwide, to explore the opportunity to maximize the local content of the Jaitapur Nuclear Power Plant Project to be established by NPCIL in India.

“BHEL and EDF will also explore larger collaboration for the European
Pressurized Reactors (EPRs) and the NUWARD SMR (Small Modular Reactor)”, the company said in an exchange filing on November 28.

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