India-based Bharat Heavy Electricals Limited (BHEL) has signed a memorandum of understanding (MoU) to set up thermal power facilities to produce 6,000MW of electricity in the Indian state of Telangana.
Expected to be developed in the next three years, the thermal plants will supply power to the state, which is facing huge power shortage following its separation from the Andhra Pradesh state.
The latest deal on engineering procurement and construction (EPC) basis was signed between BHEL chairman and managing director B Prasad Rao and Telangana Power Generation Corporation (TSGENCO) chairman and managing director D Prabhakar Rao.
A central public sector undertaking, BHEL is one of the leading companies involved in the manufacture of power plant equipment. It provides design, manufacture, supply, erection and commissioning of equipment and after sales service.
Usually approximately 36 months are required for the construction of a power plant; however, as per the agreement, approximately 1,080MW at Munuguru will become operational within the next two years.
The recent cancellation of coal block allocations by the Supreme Court has come in favour of the Telangana state as the materials meant for other projects has been lying idle, which could be used for the new thermal facilities.
BHEL chairman and managing director B Prasad Rao said: "Due to cancellation of coal block allocations by the Supreme Court, material meant for other projects is lying idle with us.
"We will use them for four units of 270MW in Manuguru, thus saving one year from the project duration."
BHEL has already implemented thermal power projects in Telangana state — at Bhupalapally, Singareni Collieries and Kothagudem.