Chennai : Power equipment major Bharat Heavy Electricals (BHEL) and Tamil Nadu Electricity Board (TNEB) will jointly set up 1,600 MW super-critical project in Tuticorin district in Tamil Nadu on an outlay of Rs.87 billion (Rs.8,700 crore).
The coal-based super-critical project – the state’s first – will be set up by a joint venture company Udangudi Power Corp in which BHEL and TNEB will hold 26 percent stake each and with the financial institutions holding the balance.
The joint venture agreement was signed by the two parties here Wednesday.
The 2×800 MW project to be built on 760 acres will have super-critical boilers, which BHEL will make in collaboration with Alstom and Siemens.
While the first 800 MW unit will go on stream in March 2012, the second unit will start functioning six months later.
The environment impact assessment (EIA) study has been completed and public hearing on the project will be held once the report is prepared.
According to the state government, consultants will be engaged for preparing the detailed project report. The feasibility report has already been prepared.
The Indian Institute of Technology-Madras will prepare the feasibility report for building jetty near the project as the coal will be imported to fire the boilers.
This is the third major joint venture signed by TNEB with a central undertaking after partnering with National Thermal Power Corp and Neyveli Lignite Corp for 1,000 MW projects at Ennore here and Tuticorin.