BHEL Shares Surge Over 8 Percent To Go Near A 52-Week High

Shares of Bharat Heavy Electrical Ltd (BHEL) rose over 8.3 per cent to close near its 52-week high on Tuesday. The day's trade ended with BHEL share prices at Rs 68.20 after touching a day high of Rs 69.20 per share. 

Opening at Rs 63.30 on Tuesday, October 18, BHEL share prices recorded a sharp jump to touch Rs 68.30 at 1:30 PM. It continued the upward trend before closing with a marginal correction.

When the day's trading opened today, the BHEL shares fell by over 1 per cent before touching a high of Rs 70.15 per cent.

The spike in the share prices comes just a few days after the company announced signing strategic MoUs with Coal India Limited (CIL) and NLC India Limited (NLCIL) for setting up Coal Gasification based plants.

Under the agreement, BHEL will jointly set up a Coal to Ammonium Nitrate Project with CIL based on the gasification of high ash Indian coal, and a lignite-based gasification pilot plant with NLCIL for power generation. The projects will use BHEL's indigenously developed Pressurised Fluidised Bed Gasification (PFBG) technology.

BHEL has successfully used its indigenous developed coal gasification technology, PFBG, to gasify high-ash Indian coals. This technology was previously used to establish a 6.2 MWe IGCC-based Combined Cycle Plant at BHEL Tiruchirappalli.

BHEL's technology could be a game changer in the power sector as the technologies developed abroad are not capable of handling Indian coal as it has over 75 per cent ash content. BHEL has also set up India's first high Indian coal to Methanol (0.25 TPD) pilot plant at its Corp. R&D, Hyderabad.