In order to set up the first supercritical thermal power project in Tamil Nadu state-run Bharat Heavy Electricals and state Electricity Board have formed a joint venture (JV) company. Land for the project has been identified at Udangudi in Tuticorin district.

According to a senior official, BHEL would be the principal equity holder in the joint venture and would set up two 800 megawatts supercritical thermal power units at an estimated cost of Rs 8,700 crore.
Supercritical technology operates at increasingly higher temperatures and pressures and achieves higher efficiencies than conventional units.

Tamil Nadu at present has an installed capacity of 10,122 MW. The official informed that BHEL was capable of producing specialised equipment required for supercritical power plants. BHEL would manufacture critical components for the proposed power plant including boilers and turbine generators at its state-of-the-art facility in technical collaboration with Alstom of France and Siemens of Germany.