The newly formed Telangana state utility, Telangana State Power Generation Corporation (TSGENCO) has awarded Bharat Heavy Electricals (BHEL) with an EPC (Engineering, Procurement & Construction) order for setting up a 4x270 MW thermal power plant in the state. Valued at over Rs 50,000 million, the present order envisages setting up a 4x270 MW Thermal Power Plant on EPC basis at Manuguru in Khammam district of Telangana.

With this, TSGENCO has reposed confidence in BHEL's expertise in this sector. Significantly, the project is targeted to be commissioned in 24 months on fast track basis with both TSGENCO and BHEL setting up teams to expedite clearances and execution of the project, the company said.

TSGENCO has also entered into an MoU with BHEL for construction of new thermal power plants totaling 6,000 MW in the state. All these power plants are expected to commence generation within the next three years to meet the state's increasing demand for power. With the order for Manuguru project, 1880 MW has already been awarded to BHEL.

BHEL's scope of work in the project includes design, engineering, manufacture, supply, construction, erection, testing & commissioning of 4x270 MW thermal sets on EPC basis. The key equipment for the contract will be manufactured at BHEL's Trichy, Hyderabad, Haridwar, Bhopal, Ranipet, Bangalore and Jhansi plants, while the company's Power Sector - Western Region will be responsible for civil works and erection / commissioning of the equipment.

Notably, with this order, BHEL's reference list is enhanced to 35 sets of 270 MW ratings units. With a manufacturing capacity of 20,000 MW per annum, BHEL is the largest manufacturer of power generation equipment in the country and has been a partner in the country's vision to achieve self-reliance in energy. The company has established the capability to deliver power plant equipment of 20,000 MW per annum aiming to meet India's demand for power equipment with technology suitable for Indian conditions developed through in-house R&D.

Shares of the company gained Rs 4.35, or 1.87%, to trade at Rs 236.90. The total volume of shares traded was 127,699 at the BSE (11.56 a.m., Monday).