Bharat Heavy Electricals (BHEL) and Madhya Pradesh Power Generating Company (MPPGCL) are close to ink a Memorandum of understanding (MoU) for a joint venture to set up a 1,600 megawatt thermal power station in Khandwa district, officials said today.
The two companies are close to ink the MoU to commission a thermal power station under a JV, a top official of BHEL told PTI today.
Under the plan, two units of 800 Mw each will come up in Khandwa, he said, adding this is going to be the first time that such a big project will come up in Madhya Pradesh.
"It takes roughly five years to set up a thermal station," MPPGCL Chairman and Managing Director (CMD) R B Agrawal said.
He said Khandwa has ample water for power generation as Narmada passes from there.
The project is likely to cost around Rs 8,000 crore, power sector experts said.
Meanwhile, as the election code of conduct is in force in view of the next month's civic body polls in Madhya Pradesh, BHEL and MPPGCL had already got permission from the State Election Office to hold a function for the JV signing here on November 17, sources said.