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BHEL has received a LNTP from NTPC to begin basic engineering for the primary plant package.
Indian power equipment manufacturer Bharat Heavy Electricals (BHEL) has secured a contract from NTPC to establish the main plant package of three units of the 800MW Telangana Stage-II supercritical thermal power plant (STPP) project.
BHEL’s scope under this contract extends to design, engineering, manufacturing, and commissioning, along with the civil construction of the power plant.
The company has already received a limited notice to proceed (LNTP) from NTPC to commence the basic engineering work for the main plant package.
The three units will be set up at a cost of Rs293.44bn ($3.48bn).
The project is one of three STPPs approved by NTPC’s board of directors, with a total cost of Rs797.38bn for Stage-II expansion, earlier this month.
The other two approved projects are the Nabinagar STPP and Gadarwara STPP.
Stage II of the Nabinagar STPP will include the installation of three 800MW units at an estimated cost of Rs299.47bn.
Meanwhile, Stage II of the Gadarwara STPP will comprise two 800MW units with a projected cost of Rs204.45bn.
BHEL has contributed to more than 57% of NTPC’s thermal power installations across India and has a portfolio of over 168GW of utility power capacity installed nationwide.
Earlier this year, NTPC unveiled plans to acquire the distressed KSK Mahanadi domestic power station in Chhattisgarh, a 3.6GW greenfield project valued at Rs50bn.
The project, under insolvency since April 2022 due to a Rs217.60bn default, faced challenges after coal block cancellations and reduced tariffs. Initially launched with a 1.8GW capacity, its expansion was stalled, leaving four units incomplete.
NTPC aims to boost capacity, aligning with India’s projected 7% annual power demand growth by 2027. This marks NTPC’s second acquisition of a stressed asset, following the 600MW Jhabua Power plant purchase in Madhya Pradesh in 2022. |
