Kolkata, Sep 14 (IANS) China’s leading equipment manufacturing company Shanghai Electric Group will supply boilers, turbines and generators (BTG) for power utility CESC’s 600 MW thermal project at Haldia in West Bengal and the two companies will also extend strategic co-operation on setting up coal-based power plants in India.

Haldia Energy Limited, a wholly-owned subsidiary of CESC Limited, a group company of the Rs.14,000 crore RP-Sanjiv Goenka Group, Wednesday signed an agreement with Shanghai Electric for the BTG at an estimated cost of Rs.1,000 crore.

Apart from the Haldia contract, another agreement was signed between the two parties for strategic longtime co-operation. They will co-operate on setting up of coal-based power plants in India.

‘In long-term, we could be looking at future tie-up in UMPP (Ultra Mega Power Project) and wind power. Both the firms would like to work with each other. This contract (with Shanghai Electric) could be upgraded to a joint venture,’ group chairman Sanjib Goenka said.

On Haldia plant, Goenka said: ‘Work has begun in full swing at Haldia with all necessary clearance received. In the first phase, the plant will generate 600 MW (2X300) and is expected to be completed by the middle of 2014.’

In the first phase, the total investment in the Haldia plant was Rs.3,250 crore, he said adding, the ‘zero date for the plant starts today (Wednesday)’.

The company got long-term coal linkage from Mahanadi Coalfields Ltd. for the plant. It already possessed 420 acres of land in Haldia.

Shanghai Electric vice president Zhu Denian was present on the occasion.