Nagpur: Public sector power equipment maker BHEL will set up a fabrication unit at a cost of Rs 1,000 crore in Sakoli, about 80 km near here in Bhandara district, a top official said on Friday.
"BHEL is in the process of acquiring 200 acres of land to set up a fabrication plant to meet its own requirement for electrical machines," Head of BHEL Power Sector (Western Region) K S Mathur, told reporters here.
He said the land acquisition talks from both the state government and private parties was in an advanced stage and may be over during the current fiscal. After that, the company will start the work on the plant, which will cost Rs 1,000 crore.
One such plant exists in Trichy and since Bhandara unit will be located in central India, it would help in dispatching fabricated parts quickly, Mathur said.
Mathur admitted that there was 20 percent gap between supply and demand though the company has augmented its production capacity from 6,000 mw to 20,000 mw capacity generation units.
BHEL recently supplied one unit of 500 mw to MahaGenco's Khaparkheda thermal power plant near here, two units of 500 mw each to its facilities in Bhusaval, North Maharashtra and 351 mw unit to Gujarat State Energy Generation Ltd's unit at Hazira, he said.