New Delhi, March 30 (IANS): State-run power equipment maker Bharat Heavy Electricals Ltd. (BHEL) on Monday said it is setting up four 270 MW units valued at Rs.5,000 crore for Telangana State Power Generation Corporation Limited (TSGENCO) in the state.

The units would be set up at Manuguru in Khammam district of Telangana.

"The project is targeted to be commissioned in 24 months on fast-track basis with both TSGENCO and BHEL setting up teams to expedite clearances and execution of the project," the company said in a statement.

The company said, in December last year, the Telengana state-owned power company had placed an order with BHEL to set up Telangana's first supercritical thermal power plant of 800 MW rating at Kothagudem in the state.

"TSGENCO has also entered into an MoU with BHEL for construction of new thermal power plants totaling 6,000 MW in the state. All these power plants are expected to commence generation within the next three years to meet the state's increasing demand for power," the company said.

BHEL's scope of work in the project includes design, engineering, manufacture, supply, construction, erection, testing and commissioning of the four 270 MW thermal units on EPC (Engineering, Procurement and Construction) basis.

"To overcome the current uncertainty of coal supply, BHEL shall use its in-house developed fuel flexible boiler in the proposed power plants. This boiler is capable of firing the entire range, from 100 percent Indian to 100 percent imported mix of coal," the Maharatna company said.

It said that the use of this boiler will provide security against variation in design coal and the coal actually available during operation, thereby offering operational flexibility for uninterrupted generation.