Located at Damaracherla in Nalgonda district, the Yadadri thermal power station will be owned by state utility Telangana State Power Generation (TSGENCO) and will comprise five units, each with installed capacity of 800MW.
The execution of the 4,000MW Yadadri supercritical TPP by Bhel follows the issuance of revised letter of intent (LoI) by TSGENCO.
TSGENCO awarded engineering, procurement and construction (EPC) contract to Bhel for the Yadadri project in 2015.
Under the contract, Bhel is responsible for design, engineer, manufacture, supply, construct, erect, test and commission the Yadadri project.
Bhel will manufacture the key equipment for the project at its facilities in Trichy, Haridwar, Hyderabad, Bhopal, Ranipet, Bangalore and Jhansi.
The company has so far commissioned 86% of the coal-based power generation capacity in Telangana.
It said that the order for Yadadri TPP is the single-largest order for the firm as well as the highest value order ever placed in the India power sector.
The project, which will comply with the revised emission regulations, has already secured environmental approval by the Ministry of Environment, Forest and Climate Change (MoEF&CC).
TSGENCO earlier awarded contracts to Bhel to build 800MW supercritical thermal power plant at Kothagudem as well as 4x270MW Bhadradari power plant in Khammam, Telangana.