Jaiprakash Power Ventures Ltd (JPVL), the designated power vehicle of Jaypee Group and Larsen & Toubro (L&T) signed an agreement worth Rs 4,000 crore for supplying equipment for the Jaypee Nigrie Super Thermal Power Project in Madhya Pradesh.

Under the agreement, L&T will supply 2 units of 660 Mw each for the power plant.

While the order for boilers for the plant has been handed over to L&T-MHI Boilers Pvt Ltd (LMBPL), the order for turbine and generators has been given to L&T, which will source the equipment from L&T-MHI Turbine Generators Pvt Ltd (LMTGPL). Both LMBPL and LMTGPL are 51:49 joint ventures between L&T and Mitsubishi Heavy Industries of Japan.

Mr. Manoj Gaur, Executive Chairman of Jaiprakash Associates Ltd, announced that they will be investing Rs 8,000 crore on this power project. The financial closure has already been attained with ICICI Bank as lead financial institution.

Coal for the plant will be obtained from 2 captive coal blocks, Amelia (North) and Dongri Tal II, possessed by a joint venture of Jaypee Group with the MP State Mining Corporation Ltd (MPSMCL).

The first 660 Mw unit of the power project is likely to be commissioned in April 2013 and the other unit would be commissioned in September 2013. When operational, the power plant will generate over 10 billion units of power yearly.

At present, Jaypee Group has a functional power generation capacity of more than 900 Mw, and it has decided to add another 2,000 Mw capacity by the current five-year plan period ending 2012.

Mr. Gaur told that they want to take their total capacity to more than 13,470 Mw, with a 60:40 mix of thermal and hydro in less than 7 years from now.

The company plans to establish about 4,000 Mw of domestic power equipment manufacturing capacity by the year 2010.