New Delhi, Aug 17 (IANS) Sahara India Power Corporation Wednesday said it will set up a total 6,000-megawatt capacity in thermal power plants in India in association with government-run South Korean firm Korea East-West Power Company.

The companies have entered into an agreement to jointly participate in tariff-based bidding for ultra mega power projects and other opportunities in India to add up to a total capacity of 6,000 megawatts, an official statement said.

The new deal follows an earlier tie-up between Sahara India Power Corporation and Korea East-West Power Company for setting up of two 660 megawatt power plants at Titlagarh in Orissa with an investment of nearly Rs.8,000 crore.

"The association will bring in world-class high-end technological advancements in power generation and the establishment of 6,000 MW of power plants through mega and ultra mega projects will help in reducing power deficit in our country," Ashok Bhargava, chief executive of Sahara India Power Corporation, said after signing the agreement.