India's GMR Energy Awards $1 Billion Contract to Doosan Heavy Industries for Coal-Fired Plant in Chhattisgarh

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Researched by Industrial Info Resources (Sugar Land, Texas)--Doosan Heavy Industries and Construction Company (SEO:034020) (Gyeongsahngnam, South Korea) has secured a $1 billion contract from GMR Energy Limited (Bangalore, Karnataka) to set up a power plant in the state of Chhattisgarh. The 1,370-megawatt (MW) coal-fired plant, upon completion in the latter half of 2013, is likely to offset the power deficit in the region to some extent.

Under a separate contract worth $739.26 million, Doosan will deliver power equipment required for the venture to Indian subsidiary Doosan Projects India Private Limited (Gurgaon, Haryana).

Doosan will execute engineering, procurement and construction (EPC) activities for the proposed plant, as well as design, installation and testing of associated power equipment, including turbine generators and boilers.

Based on the Project Implementation Agreement signed with the state government of Chhattisgarh, GMR Energy will build, own and operate the power plant over a period of 40 years. The plant, due to be constructed in Raipur, will comprise two units of 685 MW each.

The venture represents a milestone for Doosan, as the firm will, for the first time, design and deliver the entire range of equipment required for a power plant. Earlier orders required supply of only the boiler components. The Raipur plant is likely to serve as a reference site for Doosan's technology, from which the company hopes to gain a foothold in the Indian power sector.

Doosan is already involved in two major power ventures in the country: the 1,980-MW Sipat thermal power project in 2004, and more recently, the Mundra ultra-mega-power project (UMPP) in 2007. The $1 billion, 4,000-MW UMPP at Mundra in Gujarat is due for completion by 2012. Doosan had secured the contract for developing the entire boiler island, including supercritical boilers for the five power generating units of 800 MW each, electrostatic precipitators, a supercritical steam generator, and associated instrumentation. The first unit of 800 MW is slated to begin operations by the third quarter of 2011.

As India looks to add more than 160,000 MW of thermal power generation capacity during the next decade, new coal-fired power projects are likely to be initiated. With two thermal power projects to its credit and the third likely to prove its competence in the domain, Doosan is set to pursue future opportunities in the country's power sector.

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