Telangana State Power Generation Corporation (TS Genco) and Bharat Heavy Electricals Limited (Bhel) have signed a memorandum of understanding (MoU) to establish thermal power plants to generate 6,000 MW of electricity in Telangana, it was officially announced on Sunday.

The MoU was signed here yesterday in the presence of Telangana Chief Minister K Chandrashekar Rao, an official release said here.

Bhel, a central public sector undertaking is the largest engineering and manufacturing enterprise in India as well as one of the leading companies in the field of power plant equipment.

Bhel's range of services extend from project feasibility through design, manufacture, supply, erection and commissioning, to after sales service.

TS Genco has an installed power generating capacity of 4,364 Mw and has technical capability in the area of installing, owning, operating as well as maintaining power plants, the release said.

Bhel has already executed thermal power projects in Telangana in Bhupalapally, Singareni Colleries and Kothagudem, whose performance is above the national average in terms of plant load factor, the release said.

The chief minister reposed faith and confidence in Bhel, which would execute the project as the nominated engineering procurement and construction contractor within three years, the release added.