Bharat Heavy Electricals is set to begin work on India's first and largest integrated coal gasification combined cycle (ICGCC) power plant in June 2010.
The INR 2,500 crore ($562m) project to be located in the state of Andhra Pradesh will be set up by BHEL and its partners, the Department of Science and APGenco.
BHEL executive director AV Krishnan said that while BHEL will provide equipment, APGenco will provide the land and the department of science will bring in the finance.
The design for the 182MW plant is complete, according to Krishnan.
The ICGCC technology converts coal into gas, which is fed into gas turbines that generate steam to produce power and provide higher thermal efficiency or more power per ton of coal than conventional plants.