Bharat Heavy Electricals (BHEL) to form joint venture with Maharashtra State Power Generation (MahaGenco)

Bharat Heavy Electricals Limited (BHEL), an engineering and manufacturing company, and Maharashtra State Power Generation Co., Ltd. (MahaGenco), a power generation company, have signed a memorandum of understanding to setup a joint venture company (JVC) to build, own, and operate a 2x660 megawatt thermal power plant with supercritical parameters at Latur in Maharashtra, India. Both the companies are based in India.

BHEL and MahaGenco would set up the JVC with initial equity equally subscribed by both the partners. Subsequently, the equity would be diluted so that the stake of both BHEL and MahaGenco is limited to 26% each and the balance equity of 48% is subscribed to by financial institutions/banks and other partners. The order for setting up of the power project would be placed on BHEL by the JVC.

The first unit of coal-based power plant is expected to start its operations within four years of the order being placed on BHEL and second unit will get operational within five years.

The TG units would be manufactured by BHEL at its Haridwar plant in India while the supercritical boilers would be manufactured at BHEL's Tiruchy plant in India.

Deal Type    Partnership
Sub-Category Joint Venture
Deal Status  Announced: 2009-08-12

Deal Participants

Partner 1 (Company) Maharashtra State Power Generation Co. Ltd.
Partner 2 (Company) Bharat Heavy Electricals Limited
Partner 3 (Company) Undisclosed Partners

Related terms: coal, electricity, engineering, equity, india, joint venture, manufacturing, partnership, plant, power plant