Bharat Heavy Electricals Limited (BHEL) has achieved a new landmark by securing the single-largest order in its history for setting up a 4,000 MW (5×800 MW) supercritical thermal power project from Telangana State Power Generation Corporation Limited (Telangana State Power Generation Corporation Limited). Significantly, valued at at Rs.179,500 Million, this is also one of the highest value orders ever placed in the capital goods sector in India.
Notably, close on the heels of placing two major orders on BHEL, the newly formed Telangana state utility, Telangana State Power Generation Corporation Limited has entrusted BHEL with this order for setting up the 5×800 MW thermal power plant, with supercritical parameters, on Engineering, Procurement and Construction (EPC) basis, at Damaracherla in Nalgonda District in the state, named as Yadadri Thermal Power Project. Earlier, in December, 2014, Telangana State Power Generation Corporation Limited had placed an order on BHEL for setting up Telangana’s first Supercritical Thermal Power Plant of 800 MW rating, also on EPC basis, at Kothagudem, followed by an order for the 4×270 MW Bhadradari TPS at Manuguru in Khammam district in March 2015.
This landmark order is a testimony to BHEL’s proven technological excellence as also its capability in executing power projects of this magnitude on EPC basis. The project would be carried out on fast track basis with both BHEL and Telangana State Power Generation Corporation Limited setting up teams to expedite clearances and speedy execution of the project. BHEL’s scope of work in the project includes design, engineering, manufacture, supply, construction, erection, testing & commissioning of 5×800 MW thermal sets on EPC basis.
The key equipment for the contract will be manufactured at BHEL’s Trichy, Haridwar, Hyderabad, Bhopal, Ranipet, Bangalore and Jhansi plants, while the company’s Power Sector construction division will be responsible for civil works and erection / commissioning of the equipment. BHEL has been a long standing partner in the development of the erstwhile combined state of Andhra Pradesh with 78% of the coal-based power stations having been commissioned by the company. In FY 2014-15, these plants operated at a high Plant Load Factor (PLF) of 83.5% against the national average of 65.5%. Projects equipped with BHEL-supplied sets such as Ramagundam, Vijayawada, Kothagudem & Rayalaseema have consistently been winning meritorious awards from the Ministry of Power for outstanding performance. As testimony to BHEL’s capabilities in setting up of power projects as well as the performance of these plants, Telangana State Power Generation Corporation Limited has entered into an A memorandum of understanding (MoU) is an agreement between two (bilateral) or more (multilateral) parties. It expresses a convergence of will between the parties, indicating an intended common line of action. It is often used in cases where parties either do not imply a legal commitment or in situations where the parties cannot create a legally enforceable agreement... with BHEL for construction of new thermal power plants totalling to 6,000 MW in the state.
All these power plants are expected to commence generation on fast track basis to meet the state’s increasing demand for power, with power being identified as a crucial factor for the development of the state. To overcome the current uncertainty of coal supply, BHEL shall be supplying its in-house developed fuel flexible Boiler, which is capable of firing the entire range, from 100% Indian to 100% imported mix of coal. This design has been developed by BHEL with its vast experience of over five decades of working with various types of coal. This will provide security against variation in design coal and the coal actually available during operation, thereby offering operational flexibility to ensure uninterrupted generation of electricity.
Notably, with this order, BHEL has so far contracted 12 sets of main plant equipment, comprising boilers and turbine generators, of 800 MW rating. In addition, BHEL has contracted another 4 boilers of this rating. This order has once again reinforced BHEL’s position at the forefront of power equipment suppliers in India. BHEL is the largest manufacturer of power generation equipment in the country and has been a major 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 to fully meet India’s demand for power equipment with technology suitable for Indian conditions developed through in-house R&D.