As a first step, the country's largest power equipment supplier will sign a memorandum of understanding (MoU) with the APGenco for supplying equipment for a 125-mw plant, which is expected to come up at Vijaywada, Andhra Pradesh, shortly.
"BHEL and APGenco will sign the MoU on 10 May in Vizag," S N Dash, secretary in the Ministry of Heavy Industries and Public Enterprises, said.
The plant will be based on the integrated gassification combined cycle (IGCC) technology, which uses synthetic gas produced in a captive gasification unit to power a turbine generator in the plant, thus producing low-cost power.
According to a senior BHEL official, the firm will supply the equipment within 36 months. The company will float the joint venture with the Tamil Nadu State Electricity Board (TNEB) for the execution of a 1,600 mw (2 units of 800 mw each) supercritical thermal power project in Tamil Nadu estimated to come up at an investment of Rs 8,500 crore. The MoU for the JV was signed last October.
Similar ventures may also be finalised with Uttar Pradesh, Orissa, Gujarat and Maharashtra. Meanwhile, BHEL has also bagged its maiden orders for super critical boilers from NTPC. "We will supply two boilers of 660 mw capacity each for NTPC's Barh stage-II power project.
The engineering work has already begun and the supply is expected to begin in a year's time," the BHEL official said.
BHEL will invest around Rs 10,000 crore to expand manufacturing facilities at Trichi to meet the increased demand, the official added.
