Bharat Heavy Electricals (BHEL) has been awarded a contract by Telangana State Power Generation Corporation Limited (TSGENCO) to construct supercritical thermal power plant in the Indian state of Telangana.

Under the INR38.1bn ($601m) engineering, procurement & construction (EPC) contract, BHEL will design, engineer, manufacture, supply, construct, erect, test and commission the 800MW supercritical set.

Scheduled to be commissioned in 36 months on fast track basis, the power plant will be built at Kothagudem in Khammam district of Telangana.

BHEL will manufacture the project’s key equipment at its Trichy, Hyderabad, Haridwar, Bhopal, Ranipet, Bangalore and Jhansi plants while the company’s Power Sector – Southern Region will be responsible for civil works and erection/commissioning of the equipment, as part of the contract.

Meanwhile, BHEL has also received an advance payment of INR3.5bn ($55.2m) from the Telangana government.

Separately, TSGENCO has signed a memorandum of understanding (MoU) with BHEL for construction of new thermal power plants, totaling 6,000MW, in the state in the next three years in order to address growing power requirements.