BHEL ties up with Madhya Pradesh Power Generation Co for Power Plant
Submitted by Prema Kher on Wed, 11/18/2009 - 17:59
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Government held BHEL has entered into an alliance with Madhya Pradesh Power Generation Co. Ltd. The two companies have decided to form a JV with the aim to construct, own and operate a 1,600 MW coal-based power facility at Khandwa in Madhya Pradesh.
In an announcement, BHEL said that at the beginning, the two companies will possess 50% equity stake each in the JV. Later, they will reduce their holding equity stake to 26 per cent each and the remaining 48 per cent stake will be pledged by banks, financial institutions and its other associates.
The first part of the project will occur within 48 months of the order of constructing the facility being placed on BHEL.
The second unit will be functional within 54 months.