Public sector power utility BHEL today said it has entered into an agreement with the Madhya Pradesh Power Generation Company (MPPGCL) for jointly setting up a thermal power project in the state.

The joint venture company will build a 2x800 MW thermal power plant with supercritical parameters at Khandwa in Madhya Pradesh, BHEL said in a statement.

Supercritical technology ensures lower coal consumption, lower emission, eco-friendly and efficient power generation.

Under the agreement, BHEL and MPPGCL would set up a JVC with initial equity being equally subscribed by both partners.

“Subsequently, the equity would be diluted so that the stake of both BHEL and MPPGCL is reduced to 26 per cent each and the balance equity of 48 per cent is subscribed to by financial institutions, banks and other partners,” BHEL said.

The order for setting up of the power project would be placed on BHEL by JVC on a nominated basis.

The first unit of the coal-based power plant would come up within 48 months of the order being placed on BHEL and the second unit will get operational within 54 months, the company added.

Shares of BHEL were trading at Rs 2,268.50, down 0.48 per cent in the afternoon trade on the Bombay Stock Exchange.

Keywords: MPPGCLBHELthermal power

More In: Companies | Business