Power equipment manufacturer Bharat Heavy Electricals (Bhel) has won a contract worth Rs179,500m ($2.81m) from Telangana State Power Generation (TSGENCO) to develop 4,000MW Yadadri supercritical thermal power project in the Indian state.

The state utility TSGENCO will be setting up the project at Damaracherla in Nalgonda District.

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The planned power facility will house five 800MW thermal units, which will be designed, engineered, manufactured and supplied by the Indian company.

Under the terms of the engineering, procurement and construction (EPC) contract, Bhel will also be responsible for construction, erection, testing and commissioning of the facility.

"The planned power facility will house five 800MW thermal units."

The Yadadri power plant will feature Bhel’s in-house manufactured fuel flexible boiler, which will help it to rise above the uncertainty of coal supply.

The boiler is capable of firing the entire range of coal and will allow operational flexibility for uninterrupted power generation by offering security against variation in design coal and the actual available coal during operation.

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TSGENCO and Bhel will co-ordinate and launch teams to accelerate clearance processes for the proposed project.

The Indian state intends to start operations at the planned facility as soon as possible to meet the rising electricity demands in the state.

Key equipment for the project will be developed at Bhel’s facilities in Trichy, Haridwar, Hyderabad, Bhopal, Ranipet, Bangalore and Jhansi.

Bhel’s Power division will carry out the civil works for the project and commissioning of the equipment.

This is not the first TSGENCO project for Bhel, since it has won two more contracts for thermal power developments in the state, one in December 2014 and the other, earlier this year.