Larsen and Toubro has emerged as the lowest bidder for a combined package valued at approximately ₹22,500 crore, according to industry sources. The bids relate to two large-scale thermal power projects—NTPC’s Lara Super Thermal Power Project Stage III in Chhattisgarh and the DVC-CIL Chandrapura Thermal Power Station expansion in Jharkhand. Both projects involve capacity additions of 2x800 MW each, indicating continued investment in high-efficiency, large-unit thermal infrastructure.

The NTPC Lara Stage III project represents an extension of an existing thermal facility and is part of the broader strategy to enhance baseload generation capacity in central India. Meanwhile, the Chandrapura project under the Damodar Valley Corporation and Coal India linkage is aimed at strengthening power supply in eastern India, particularly for industrial and grid stability requirements. These projects typically involve engineering, procurement and construction (EPC) contracts, where L&T has historically maintained a strong execution track record.

Separately, Bharat Heavy Electricals Limited has emerged as the lowest bidder for a ₹10,300 crore package related to the Odisha Genco thermal power station expansion project. BHEL’s participation reflects its continued presence in core power equipment manufacturing, particularly boilers, turbines and generators for large thermal units.

What is changing is the renewed traction in thermal power project ordering after a relatively muted phase in recent years. While India has aggressively pushed renewable capacity, the need for reliable baseload power has led to a revival in thermal project pipelines, especially supercritical and ultra-supercritical units designed for higher efficiency and lower emissions intensity.

Why this matters for the market is tied to order inflows and execution visibility for capital goods companies. For L&T, securing the lowest bidder position in large EPC contracts enhances its near-term order book prospects and reinforces its leadership in infrastructure and energy construction. For BHEL, continued success in bidding for power equipment contracts supports utilisation of its manufacturing capacities and sustains its core business segment.

However, it is important to note that being the lowest bidder does not automatically translate into order finalisation. Contract awards remain subject to technical validation, financial closure and formal approvals by project authorities. Until confirmed, these developments remain indicative of potential order wins rather than executed contracts.

From an industry perspective, the scale of these bids highlights ongoing investment in thermal capacity alongside renewable expansion. India’s power demand continues to grow steadily, driven by industrialisation, urbanisation and electrification trends. Thermal power, particularly coal-based, still plays a critical role in ensuring grid reliability, especially during peak demand periods or renewable intermittency.

Market Impact on India

The developments signal a strengthening pipeline for large EPC and capital goods companies, which could support revenue visibility over the medium term. Increased thermal capacity additions also indicate policy balancing between renewable targets and baseload security.

Sector Impact

Within the industrials and power equipment sector, the bids suggest improving order inflows after a slowdown phase. Companies with strong execution capabilities and manufacturing depth are likely to benefit from this revival in thermal project activity.

Bull vs Bear Scenario

The bullish view is that large-scale project wins will drive order book growth, improve capacity utilisation and support earnings visibility for L&T and BHEL.

The bearish perspective highlights execution risks, cost overruns and delays in final order awards, especially given the scale and complexity of thermal EPC projects.

Risk Section

Key risks include delays in contract finalisation, regulatory changes affecting thermal power expansion, and rising input costs impacting project margins. Additionally, long gestation periods and dependency on fuel linkages could affect project viability and timelines.

Overall, the emergence of L&T and BHEL as lowest bidders for major thermal projects reflects a revival in large-scale power infrastructure investments, though final award confirmation will be the key trigger for market re-rating.