Bharat Heavy Electricals (BHEL) has been awarded an engineering, procurement & construction (EPC) order worth Rs38.1bn ($601m) to set up one 800MW unit at the Supercritical Thermal Power Plant in the state of Telengana, India.

According to the contract with the Telangana State Power Generation Corporation Limited (TSGENCO), BHEL will build the first supercritical thermal power plant in the state at Kothagudem in Khammam district.

The facility is expected to be commissioned within 36 months. BHEL claims the project reinforces TSGENCO’s confidence in its technological excellence.

The scope of the project involves design, engineering, manufacture, supply, construction, erection, testing, and commissioning of the 800MW supercritical set on EPC basis.

"BHEL claims the project reinforces TSGENCO’s confidence in BHEL’s technological excellence."

Equipment to be installed at the plant will be manufactured at BHEL-owned plants of Trichy, Hyderabad, Haridwar, Bhopal, Ranipet, Bangalore, and Jhansi.

The project raises BHEL’s count of supply and installation to 36 supercritical boilers and 31 turbines, with capacities ranging from 660MW to 800MW.

The Indian power manufacturer has commissioned 84% of coal-based power facilities in Andhra Pradesh, which was split into two states; Andhra Pradesh and Telengana in 2014.

While the national average for plant load factor (PLF) is around 65.6%, BHEL claims its plants offer high PLF of 78.1%.

Power projects in Ramagundam, Vijayawada, Kothagudem, and Rayalaseema are equipped with sets from the firm, BHEL say.

The recent contract is in line with TSGENCO’s memorandum of understanding (MoU) with BHEL, according to which the latter will be responsible for constructing new thermal power plants with a total generation capacity of 6,000MW within three years.