BGR Energy Systems has bagged an turnkey EPC contract for setting up 2 x 300 MW coal based thermal power project from New Delhi based TRN Energy. The 600 MW coal based TPS is coming up at Nawapara Village Chhattisgarh and has all the key approvals such as Environmental clearance, Coal Linkage (tied up with Southe Easter Coal Fields). The company has also linkage for water supply and have required land in place. This limits the execution risks and hasten the Financial Closure.

The order value of Rs 1698 crore includes foreign currency content of USD 188 Million at an exchange rate of Rs 44.70. The contract provides for foreign exchange variation protection to the company at actual exchange rate.

Being a turnkey contract the company's scope involves engg, procurement, construction and commissioning of power plant. According to BGR Energy, the BTG (boiler, turbine, Generator) will be sourced from China Western Power Industrial Company and the the balance of plant (BoP) will be sourced domestically. Sourcing of mainplant from Chinese players gives edge and drow down the price /MW to about Rs 2.83 crore/MW and there is no compromise on margin on the front. The turn key contract completion schedule will be 29 months for unit I and 32 months for unit II. The company expects to recognize about Rs 1200 crore in FY13 itself out of total order value of Rs 1698 crore.