State-run Bharat Heavy Electrical Limited (BHEL) has announced that it has linked up with Tamil Nadu Electricity board to commence a 2x800 Mw Thermal power plant at Udangudi in Tuticorin district, Tamil Nadu.

According to the sources, the association would be christened Udangudi Power Corporation Ltd, in which TNEB, BHEL and other financial institutions, would have equity stakes.

The sources further revealed that the proposed project with a total capital outlay of around Rs 87,000 million, will be the first supercritical power project to be set up in the state of Tamil Nadu and will bolster the power availability in the state.

According to the company officials, the first unit of 800 Mw plant will begin in March 2012 and the second unit in September 2012.

The reports revealed that the current installed power generating capacity in Tamil Nadu is 10,122 MW.

Bhel would be offering the equipment for the project.