On 8 February 2007, Bharat Heavy Electricals bagged an order worth Rs.400 crore from National Hydroelectric Power Corporation for setting up a 520 MW (4x130 MW) Parbati hydro electric power project (Stage III) in Himachal Pradesh.

BHEL's scope of work envisages design, manufacture, supply, installation and commissioning of complete electromechanical works for the project. Major equipment to be supplied includes four high-head Francis ydro Turbines with matching synchronous generators, digital governors, microprocessor-based controls, monitoring and protection system with state-of-the-art technology, besides other associated equipment and auxiliaries.

Located at Bihali in Kullu district, about 250 kilometres from Chandigarh, the underground powerhouse will generate electricity utilising the waters of the river Sainj, a tributary of Beas river. The project is slated for commissioning within 50 months.

For NHPC, BHEL is also executing its first ever mega hydro power project contract for the 800 MW Parbati hydroelectric power project (Stage-II), to be equipped with the country's largest capacity (4x200 MW) Pelton hydro turbines, besides the 120 MW Sewa hydro electric power project (Stage II) in Jammu & Kashmir.

BHEL has so far designed, manufactured, supplied and commissioned 386 hydro generating sets totalling to more than 16,500 MW in the country. Currently, the company is executing several hydro projects in the country that are in various stages of commissioning. BHEL has also commissioned 40 hydro sets corresponding to 2,150 MW outside India, in various countries including Nepal, Malaysia, Thailand, New Zealand, Azerbaijan and Bhutan. Presently, six hydro sets totalling to 444 MW, are in different stages of design, manufacture, supply and installation in Taiwan, Afghanistan and Bhutan.