New Delhi, Jan 15 (IANS): State-run electrical equipment behemoth Bharat Heavy Electricals Limited (BHEL) Thursday said it has bagged a project worth Rs.12,020 crore in Karnataka to set-up a Combined Cycle Power Plant (CCPP) on EPC (Engineering, Procurement & Construction) basis.

"Valued at Rs.12,020 crore, the order for the 370 MW Gas Turbine-based CCPP to be installed at Yelahanka on the outskirts of Bengaluru city, has been placed on BHEL by Karnataka Power Corporation Limited (KPCL). Significantly, this will also be the first gas-based Utility Power Project of KPCL," the company said in a statement.

The contract involves supply and commissioning of a fuel-efficient state-of-the-art advanced-class gas turbine. The key equipment for the contract will be manufactured at BHEL's Hyderabad, Trichy, Haridwar, Bhopal and Jhansi plants, while the company's Power Sector - Southern Region shall execute the civil works, erection and commissioning of the equipment.

According to the Maharatna company, the plant will replace the old diesel generator-based power plant of 128 MW capacity, which has not been operating for some time due to environmental issues. Yelahanka CCPP will not only address environmental concerns but will also improve the power supply in Karnataka and specifically Bengaluru city.

"BHEL has a long association with KPCL and BHEL-supplied sets account for 74 percent of its installed capacity. Another 3,100 MW of projects are presently under construction by BHEL at Bellary, Yeramarus and Edlapur," the company said.

Gas-based power plants have the advantage of quick start-up and are environment-friendly besides being suitable for peaking power.

As per the electrical equipment manufacturer, with the recent gas price revision and proposal for gas price pooling, gas availability is likely to improve which will result in the setting up of more gas-based power plants.