(Source: Datamonitor)
Madhya Pradesh Power Generation Company and Bharat Heavy Electricals have signed a memorandum of understanding for setting up a joint venture company to build, own and operate a 2x800MW thermal power plant with supercritical parameters at Khandwa in Madhya Pradesh, India.
Bharat Heavy Electricals Limited (BHEL) and Madhya Pradesh Power Generation Company Limited (MPPGCL) will reportedly set up the joint venture company (JVC) with initial equity equally subscribed by both the partners.
Subsequently, the equity will be diluted so that the stake of both BHEL and MPPGCL is reduced to 26% each and the balance equity of 48% is subscribed to by financial institutions/banks and other partners. The order for setting up of the power project will be placed on BHEL by the JVC on a nominated basis, the company said.
The first unit of the coal-based power plant would come up within 48 months of the order being placed on BHEL with the second unit will get operational within 54 months.
BHEL has added that it will initiate advance action for pre-engineering activities. The TG units of 800MW will be manufactured by BHEL at its Haridwar plant, while the once-through supercritical boilers, will be manufactured at BHEL's Tiruchy plant.
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