Mumbai: Public sector unit BHEL and Maharashtra energy utility Mahagenco on Wednesday signed an agreement to set up a joint venture (JV) company which will construct a coal- fired 1,320 MW thermal power plant at Latur.
The first unit of the power plant in central Maharashtra would come up within four years (48 months) of the order being placed with BHEL, while the second one would be operational within 48 months.
The government-owned power generation equipment maker and Maharashtra State Power Generation Company Ltd (Mahagenco) will each hold a 50% stake in the JV.
This would be subsequently diluted so that both the companies hold 26% each, while the balance 48% will be sold to financial institutions, banks and other entities.
The MoU also contains an enabling provision that in case of unavailability of coal linkage, BHEL and Mahagenco may consider setting up a 1,500 MW gas-based power plant, instead.
The order for setting up the power project would be placed on BHEL by the JV company on a nominated basis.