Hyderabad, March 2 (IANS): Singapore firm Sembcorp Industries's first power project in India has commenced commercial operation.

The firm on Monday announced completion of the first 660-megawatt unit of the Thermal Powertech Corporation India (TPCIL) plant in Nellore district of Andhra Pradesh.

The 1,320 MW coal-fired power plant in the coastal town of Krishnapatnam comprises two units of 660 MW each, with the second unit expected to begin commercial operation in the third quarter of 2015.

The approximately $1.5 billion power plant utilises supercritical technology, which allows for enhanced efficiency and reduced emissions compared to other conventional coal-fired power plants, the company said in a statement.

With the completion of this first unit, the plant has begun supplying power to the states of Andhra Pradesh and Telangana, helping to meet the increasing power demand in the southern region and supporting its economic growth.

TPCIL has already secured power purchase agreements for 900 MW, or almost 70 percent of the plant's capacity, of which 500 MW will be sold under a 25-year agreement with the Andhra Pradesh and Telangana power distribution companies.

Sembcorp owns a 65 stake in TPCIL through its wholly-owned subsidiary, Sembcorp Utilities, while Gayatri Energy Ventures, a wholly-owned subsidiary of Gayatri Projects, owns the remaining 35 percent.