BGR Energy Systems has signed a memorandum of understanding (MoU) on Friday with the Orissa Government for setting up a 1,320 MW (2 x 660) power plant at Bhapur in Nayagarh district, Orissa, at an investment of about Rs. 6,287 crore.

The MoU was signed by B.G. Raghupathy, Chairman and Managing Director, BGR Energy Systems, and P. K. Jena, Energy Secretary, Orissa Government, according to a company release.

The Orissa Government is entitled to purchase 12-14 per cent of power generated from the plant at variable cost as determined by the Orissa Electricity Regulatory Commission. BGR Energy Special Purpose Company would be free to sell the remaining power.

The plant is scheduled to be commissioned in 54 months and expected to provide direct employment to more-than 1,200 persons.

Recently, electrical projects division of BGR Energy Systems has secured a turnkey contract from Power Grid Corporation of India, for fibre optic cabling package in lieu of the existing ULDC microwave links in northern region.

The contract is valued at Rs. 99.41 crore and it will be completed over 22 months.