October 07, 2008

BHEL to set up 125 MW IGCC plant in AP

Bharat Heavy Electricals Limited has announced that it would set up integrated coal gasification combined cycle power plant at Vijaywada with Andhra Pradesh Power Generation Corporation.

Mr Santosh Mohan Dev union minister for heavy industries & public enterprises said that "Today, we are crossing a milestone in power generation technology with the signing of MoU between APGenco and BHEL for setting up a 125 MW IGCC plant at Vijaywada."

Mr K Ravi Kumar CMD of BHEL said that "BHEL has earmarked on several initiatives to meet the growing demands of India's power sector. We have also formally taken over Visakhapatnam based Bharat Heavy Plate and Vessels and we are confident of meeting the capacity addition targets for the 11th plan period, with BHPV complimenting our business."

The Andhra Pradesh government has extended various concessions for the revival of the BHPV. The concessions include the transfer of title of land measuring 386.73 acres in possession of the BHPV as gift title deed in favor of BHPV and also waiver of registration and stamp duties. Waiver of sales tax arrears of INR 42.16 crore and waiver of NALA tax of INR 4.3 million.

BHEL is also planning to increase its power equipment manufacturing capacity from 10,000 MW to 15,000 MW per annum by 2009.