The Bharat Heavy Electricals Ltd (BHEL) and the Maharashtra State Power Generation Company (MahaGenco) on Wednesday signed an agreement to establish a 1,500 MW gas-based power plant in Latur.

According to the agreement, in case the Centre fails to allocate gas to the plant, both the partners would go ahead with the construction of a 1,320 MW thermal plant at the same place.

The plant would have advanced super-critical technology and would be free from pollution.

Mr. Vilasrao Deshmukh, Union Heavy Industries Minister, announced that Union Petroleum Minister Mr. Murli Deora has assured a certain amount of gas for Latur plant.

Pointing out that Reliance's gas line from Krishna-Godavari basin passes through Latur, Deshmukh told that there is a good chance that gas from the Reliance plant would be assigned to the forthcoming power plant.