Bharat Heavy Electricals Limited (BHEL) has signed a memorandum of understanding with Madhya Pradesh Power Generation Company Limited (MPPGCL) for setting up a joint venture to build, own and operate a 2x800 MW thermal power plant with supercritical parameters, at Khandwa in Madhya Pradesh.
BHEL chairman and managing director BP Rao and MPPGCL chairman and managing director RB Agarwal signed the MoU in Bhopal today.
BHEL and MPPGCL would set up the joint venture with initial equity equally subscribed by both the partners. Subsequently, the equity would be diluted so that the stake of both BHEL and MPPGCL is reduced to 26 per cent each and the balance equity of 48 per cant is subscribed to by financial institutions/ banks and other partners, a BHEL release said.
The joint venture would place the order for setting up of the power project on BHEL on a nominated basis.
The first unit of the coal-based power plant would come up within 48 months of the order being placed on BHEL while the second unit would get operational within 54 months, the release said.
BHEL said it would initiate advance action for pre-engineering activities. The TG units of 800 MW would be manufactured by BHEL at its Haridwar plant, while the once-through supercritical boilers, would be manufactured at BHEL's Tiruchy plant.