BHEL will set up the thermal power set at the North Chennai Thermal Power Station in Tamil Nadu after manufacturing different parts of the contract at its various manufacturing units across the country.
TNEB had earlier also placed a similar EPC contract on BHEL for setting up a 600 Mw thermal unit at the same power station.
Earlier the equipment manufacturer had signed a memorandum of understanding (MoU) for a JV to set up two units of 800 Mw each for supercritical thermal power project in Udangudi in Tamil Nadu with a capital outlay of Rs 8,500 crore.
BHEL has a present manufacturing capacity of about 10,000 Mw and plans to ramp it up to 15,000 Mw by 2010.