The BGR Energy Systems Ltd of Chennai on Tuesday, July 1, declared that it has bagged a contract for ‘engineering, procurement, construction’ worth Rs 3,100 Crore from the Tamil Nadu Electricity Board (TNEB). The project entails setting up a single unit of 600 MW, coal-based power project at Mettur in Tamil Nadu. In acquiring this important contract, the BGR Energy beat BHEL, which was the only other bidder in the international tender.

It is the Chinese power equipment manufacturer Dongfang which will provide boilers, turbines and generators for this project. The BGR Energy will produce ‘the balance of plant’ in-house. This Rs 3,100 Crore project comprises the setting up of a ‘gas insulated substation’, which too will be imported. The cost of materials and services provided 'in-house' is about Rs 1,500 Crore, informed the Chairman and MD of BGR Energy, B G Raghupathy. He said that the project is to be completed within 39 months and will be subjected to penalties in case of delay. He also underscored that there would be no incentives incase of early production.