India's BHEL and MPPGCL to Develop Supercritical Thermal Power Plant in Madhya Pradesh

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Researched by Industrial Info Resources (Sugar Land, Texas)--India's leading power engineering major Bharat Heavy Electricals Limited (BSE:500103) (BHEL) (New Delhi) announced that it has entered into a joint venture agreement with Madhya Pradesh Power Generation Corporation Limited (MPPGCL) (Jabalpur, Madhya Pradesh) to develop a 1,600-megawatt (MW) supercritical thermal power project. The coal-based power plant, which will be in Khandwa in the state of Madhya Pradesh, will consist of two units of 800 MW each. The project will be built on 1,500 acres of land.

The joint venture initially will be established with equal equity contribution from both partners. Subsequently, the equity ownership of each partner will be reduced to 26%, with financial institutions and other partners contributing the balance. In November 2009, BHEL and MPPGCL signed a memorandum of understanding to develop the project, whereby BHEL will undertake supply of plant, machinery and equipment. The $1.73 billion project will be completed on a fast-track basis, with the first and second units expected to be commissioned in 48 months and 52 months, respectively, from the date of placing the order. According to reports, BHEL will begin the pre-engineering activities in advance. BHEL's facilities at Trichy in Tamil Nadu and Haridwar in Uttarakhand will manufacture supercritical boilers and turbo generator sets, respectively. To ensure timely completion of the power plant, the state government of Madhya Pradesh is expediting land acquisition and procedural clearances.

BHEL also has signed similar joint venture agreements with the state power corporations of Karnataka and Tamil Nadu. In association with Tamil Nadu Electricity Board (TNEB) (Chennai, Tamil Nadu), BHEL will develop a 1,600-MW power project, comprising two units of 800 MW each, at Udangadi near Tuticorin. A joint venture between Karnataka Power Corporation Limited (KPCL) (Bangalore, Karnataka) and BHEL will construct power plants at Edlapur and Yaramarus in Karnataka.

In a related development, BHEL secured a steam generator supply contract for a gas-fired plant at Bawana. The project, which consists of two units of 750 MW each, will operate two steam-based and four gas-based turbines. BHEL is also executing the Durgapur, Koderma and Mejia power projects, each comprising two units of 500 MW each, and a Dadri project, which comprises two units of 490 MW each.

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