BHEL joint venture in MP to set up super critical thermal power plant
27 January 2010
Power equipment maker Bharat Heavy Electricals Ltd (BHEL) today said that it will be signing a joint venture agreement with Madhya Pradesh Power Generating Company later this month to set up 2X800 MW Supercritical thermal power plant in Khandwa in Madhya Pradesh.
BHEL and MPPGCL will 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.
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.
Supercritical technology ensures lower coal consumption, lower emission, eco-friendly and efficient power generation. The project also qualifies for carbon credits under Clean Development Mechanism (CDM), the release noted.
BHEL has been promoting joint venture companies to build, own and operate supercritical thermal power plants in association with state utilities. BHEL has already set up two such joint ventures with TNEB for a 2x800MW power plant at Udangudi in Tuticorin, Tamilnadu and with KPCL for the 2x660 / 800MW and 1x660 / 800MW at Yeramarus and Edlapur in Raichur, Karnataka.