Government-backed industrial valve manufacturing company, Bharat Heavy Electricals Ltd (BHEL) on Tuesday said that it has bagged an order to supply 80 trains at the rate of Rs 120 crore per train, amounting to Rs 9,600 crore. The company is the lead member in the consortium of BHEL and Titagarh Wagons.

Share Market Live

NSE

BHEL further informed that an additional order for Annual Maintenance Contract (AMC) has also been placed for 35 years. According to the conditions of the agreement, the company will supply 80 sleeper class Vande Bharat trains and undertake comprehensive maintenance of the same for 35 years.

The industrial valve manufacturing major has also promised to equip, upgrade, operate and maintain the exclusive place provided in the Manufacturing Unit at ICF Chennai and two depots assigned by Indian Railways. The supply is expected to get completed in 72 months.

Watch: Umesh Chowdhary, MD & CEO, Titagarh Wagons in interaction with CNBC-TV18

It is pertinent to note that BHEL has gained by nearly 7 percent in the last two days while on Tuesday the stock ended 1 percent higher at Rs 71 per share. At the beginning of this month, BHEL received a Letter of Intent worth Rs 3,700 crore for the supply of strategic equipment for the defence sector.

On March 22, BHEL & IGL signed a Memorandum of Understanding for the development and manufacturing of type-IV cylinders.

Also read: Macquarie said to weigh sale of $1.5 billion India road contract