Bharat Heavy Electricals Limited and Telangana State Power Generation Corporation Limited have signed up to set up a 4,000 MW ultra mega power project at Damarcharla in Nalgonda district of Telangana.
A memorandum of understanding was inked by BHEL and TS Genco in the presence of B. Prasada Rao, Chairman and Managing Director of BHEL and D Prabhakara Rao, CMD of TS Genco.
This MoU is part of the BHEL and TS Genco plan to set up 6000 MW thermal power stations in the State.
The Yadagiri thermal power station is expected to have five units of 800 MW with the total cost of implementation pegged at Rs 17,950 crore considered to be amongst lowest such project costs in the country now. Of the 4000 MW project, two units are planned to be set up within three years.
The total project cost of setting up of 6000 MW with the BHEL works out to Rs 27,360 crore plus the interest cost of Rs 12,633 crore over the next three years taking the total capital cost to Rs 40,000 crore.
The funding requirement for the projects would be met with finance from REC of Rs 19,000 crore, PFC (Rs 15,000 crore) and the State Government equity of Rs 6000 crore. Of the State Government equity of Rs 6000 crore, Rs 2000 crore has already been deployed.
TS Genco is expected to issue the letter of award to BHEL with the total project cost of Rs 17,950 crore.