BHEL, TN govt in JV for power project

State-run Bharat Heavy Electricals (BHEL) has entered into a joint venture with the Tamil Nadu government for setting up 2x800 MW super-critical units at Udangudi, a top company official said.

"BHEL will be putting in 26 per cent equity and the Tamil Nadu government the same stake, while financial institutions will hold the remaining 48 per cent in the project," BHEL's Chairman and Managing Director K Ravi Kumar told reporters here today.

BHEL will supply boilers and turbines to the Rs 8,000 crore coal-based power project being set up there. An announcement to this effect will be made tomorrow at Chennai, he said.

Rural Electrification Corporation, IL&FS and a few banks have evinced interest in putting in equity in the project, he said.

"Selling equity will not be a problem and we should be able to get the other partners in the next couple of months," the BHEL Chairman said.

Land for the project has already been identified and the project should be up and ready in 48-months, he said.

The public sector undertaking manufactures power-plant equipment and its sets generate nearly 73 per cent of the total power generated in the country.

The company was looking at similar projects in other states as well, he said.

It plans to set up three units in Karnataka, two in Gujarat and one in Madhya Pradesh. These would be in Bansagar in Madhya Pradesh, Raichur in Karnataka and Wanakburi in Gujarat.

"However, these projects would take time to fructify, they are still in the MoU stage," he said.