BHEL and Mahagenco float JV Company for setting up Supercritical Thermal Power Project in Maharashtra

Maharashtra State Power Generation Company Limited (Mahagenco) and Bharat Heavy Electricals Limited (BHEL) have signed a Memorandum of Understanding (MoU) for setting up a Joint Venture Company (JVC) to Build, Own and Operate a 2x660 MW Thermal Power Plant with Supercritical parameters at Latur in Maharashtra. The MoU also contains an enabling provision that in case of unavailability of coal linkage, but availability of gas, the parties may consider setting up a 1,500 MW gas based power plant, instead.

The MoU was signed in the presence of Sh. Vilasrao Deshmukh, Hon’ble Union Minister of Heavy Industries and Public Enterprises, Government of India; Sh. Sunil Tatkare, Hon’ble Minister for Energy, Government of Maharashtra, Dr. Sunil Deshmukh, Hon’ble Minister of State for Finance & Planning, Public Works and Energy, Government of Maharashtra and other dignitaries, in Mumbai today. Sh. K. Ravi Kumar, Chairman & Managing Director, BHEL and Sh. Subrat Ratho, Managing Director, Mahagenco, signed the MoU.

BHEL and Mahagenco would set up the JVC with initial equity equally subscribed by both the partners. Subsequently, the equity would be diluted so that the stake of both BHEL and Mahagenco is limited 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 would be placed on BHEL by the JVC on a nominated basis.

The development of this project would be taken up at priority. 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. To this end, BHEL will initiate advance action for pre-engineering activities. The TG units would be manufactured by BHEL at its Haridwar plant, while the once-through supercritical boilers, would be manufactured at BHEL’s Tiruchy plant.

Supercritical technology ensures lower coal consumption, minimum emission, eco-friendly and efficient power generation. The project also qualifies for carbon credits under Clean Development Mechanism (CDM). BHEL has been promoting joint venture companies to build, own and operate supercritical thermal power plants in association with state utilities. BHEL has already set up two such joint ventures viz. a 2x800MW power plant at Udangudi in Tuticorin, Tamilnadu and the 2x660/800MW and 1x660/800MW at Yeramarus and Edlapur in Raichur, Karnataka, respectively.

BHEL has upgraded its technology base from sub-critical sets to supercritical sets of 660/800 MW and above. The company has ongoing collaboration agreements with Alstom, France and Siemens, Germany, with a technology transfer arrangement. This will enable the country to be self-reliant in the field of supercritical thermal power plants.

BHEL has been committed to the nation’s power development programme and has reaffirmed its commitment to the Indian Power Sector by equipping itself for the future, by way of technology, facilities and trained manpower to meet the country’s power forecast for the 11th Plan and beyond. For this, it has already enhanced its manufacturing capacity to 10,000 MW per annum and is further augmenting it to 15,000 MW per annum which is proceeding apace and plans are afoot to hike it further to 20,000 MW by 2011-12.