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Precision engineering firm Azad Engineering Ltd on Monday (October 12) said it has been awarded a two-year long-term rate contract by Bharat Heavy Electricals Ltd (BHEL) for the supply of critical stationary and rotating airfoils (blades) for heavy-duty gas turbines, with an estimated contract value of approximately ₹52.68 crore.
The company said it has been approved as a long-term source by BHEL, a public sector undertaking. The contract is scheduled to run until October 9, 2028. Azad Engineering said it had executed a similar rate contract in May 2018.
At the time of receiving the earlier contract, the company had assessed the order as not material from a business perspective and, therefore, had not disclosed it. Considering the combined value and duration of the arrangement, the contract is now being disclosed as material.
The company said the approval marks a step in its growing role in India's domestic power generation equipment ecosystem and supports BHEL's indigenisation of critical gas turbine components. The contract has been awarded by a domestic entity and is a long-term rate contract.
Shares of Azad Engineering Ltd ended at ₹2,969.95, up by ₹59.20, or 2.03%, on the BSE.
