Bharat Heavy Electricals Ltd (BHEL), the country’s largest power equipment manufacturer, today signed a joint venture (JV) deal with Madhya Pradesh Power Generation Company Ltd (MPPGCL) for setting up a 1,600-Mw supercritical thermal power plant in Khandwa district.
The two companies would equally subscribe to the initial equity of the JV company. This would later be diluted to 26 per cent each by both. The balance equity of 48 per cent would be subscribed by financial institutions and other partners.
An earlier memorandum of understanding (MoU) for floating the JV was signed by the two companies last November. BHEL will supply the equipment.
The first 800-Mw unit of the project will come within 48 months of the order and the other unit within 54 months, according to a statement.
BHEL had earlier signed two similar JVs, one each with Tamil Nadu Electricity Board and the Karnataka Power Corporation Ltd, for setting up projects of around 4,000 Mw of thermal power generating capacity. It has also signed an MoU with the Maharashtra Power Generation Company Ltd for installing a 1,600-Mw power project in the state.
BHEL has an installed equipment manufacturing capacity of over 10,000 Mw a year and plans to raise this to 15,000 Mw by the end of this financial year.
