Madhya Pradesh Power Generation Company Limited (MPPGCL) and Bharat Heavy Electricals Limited (BHEL) have formed a Joint Venture Company (JVC) to Build, Own and Operate a 2x800MW Thermal Power Plant with Supercritical parameters at Khandwa in Madhya Pradesh.

The Joint Venture Agreement was signed in the presence of Sh. Shivraj Singh Chouhan, Hon’ble Chief Minister of Madhya Pradesh; Sh. Arun Yadav, Hon’ble Union Minister of State for Heavy Industries and Public Enterprises; Sh. Rajendra Shukla, Hon’ble Minister of State for Energy & Mineral Resources, Government of Madhya Pradesh and Sh. B.P. Rao, Chairman & Managing Director, BHEL, in Bhopal.

Sh. Rakesh Sahni, Chief Secretary, Government of Madhya Pradesh and Sh. S.P.S. Parihar, Secretary, Energy, Government of Madhya Pradesh were also present on the occasion in addition to Directors on the board of BHEL as well as other senior officials of MPPGCL, DHI and BHEL.

BHEL and MPPGCL have 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 MPPGCL is reduced 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 on 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 Turbine Generator units of 800 MW 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, lower 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 with TNEB for a 2x800 MW power plant at Udangudi in Tuticorin, Tamilnadu and with KPCL for the 2x660/800MW and 1x660/800MW at Yeramarus and Edlapur in Raichur, Karnataka.