The venture is expected to have two 660MW coal-fired thermal units. The orders for the first unit of the power plant in central Maharashtra has been placed with BHEL, and the first unit would be operational within four years (48 months). The second unit would be operational within 48 months.
An official of Mahagenco informed Economic Times that the venture is expected to invest around INR70 billion in the project.
The Joint venture would be owned equally by both BHEL and Mahagenco. Later the stake would be diluted, so that both the companies will hold a stake of 26% each, and the balance 48% will be sold to financial institutions, banks and other entities.
The Memorandum of Understanding also comprises a provision that in the absence of adequate coal linkage the the venture would construct a 1,500MW gas-fired power plant, instead of a coal-fired power plant.
The joint venture company would place the orders for constructing a power plant with BHEL on a nominated basis.
The power generated from the proposed plant would be supplied in Maharashtra, where the state electricity regulatory commission would decide the rates. BHEL would reserve the right to exit after commencement of commercial operations.
Presently, Mahagenco has an installed capacity of approximately 10,000MW and excluding the deal with BHEL, it intends to add around 3,000MW by 2012.
