New Delhi: State-run engineering major Bharat Heavy Electricals Limited (BHEL) on Thursday said that it has received a Limited Notice to Proceed (LNTP) from Damodar Valley Corporation for the main plant package of the proposed 1x800 MW Durgapur Supercritical Thermal Power Station.

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LNTP is a formal, written authorization that allows a contractor to begin specific early-stage work on a project before the full contract is finalized or the official NTP (Notice to Proceed) is issued.

In a regulatory filing to the stock exchnages on Thursday, BHEL said the LNTP was issued by DVC on June 10, enabling the company to commence advance engineering activities and place orders for critical long-lead equipment required for the project.

The public sector engineering giant had earlier emerged as the successful bidder in DVC's tender for the main plant package comprising the boiler, turbine and generator (BTG) for the upcoming thermal power station.

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According to the filing, the LNTP is valid for a period of 10 months from the date of issuance. During this period, BHEL will undertake preparatory engineering work and initiate procurement of critical equipment to ensure timely execution of the project once the final order is awarded. The formal contract for supply and execution of the main plant package is expected to be placed by DVC upon completion of the 10-month LNTP period.

The advance work order is valued at over Rs 90 crore, excluding GST.

The project was awarded through an international competitive bidding process, although DVC is a domestic entity. Both BHEL and DVC are public sector undertakings.

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