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BHEL to set up thermal power units in Karnataka

National,Business, Wed, 14 Jan 2009 IANS

Mumbai, Jan 14 (IANS) State-owned engineering and manufacturing major Bharat Heavy Electricals Ltd (BHEL) has signed a deal with Karnataka to set up three thermal plants with a total capacity of 2,260 MW in the state.


BHEL will set up a joint venture with Karnataka Power Corp for constructing a 660 MW thermal power plant at Edlapur in Raichur district of Karnataka, the company said in a regulatory statement.



BHEL will also set up two thermal units of 800 MW capacity each in Raichur, where a thermal power plant already exists.



BHEL and KPCL will hold 26 percent each, with Infrastructure Development Finance Co providing the balance 48 percent equity capital in the projects.



The power would be sold exclusively to the state at rates determined by Karnataka Energy Regulatory Commission (KERC), with BHEL being granted the right to exit after commencement of commercial operations.


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