Hinduja National Power Corp is setting up a 1040 MW coal based thermal project in Pallavalasa village in Pedagantyada Mandal in Vizag district of Andhra Pradesh. Around 85% of power generated will be supplied to AP grid. The company has awarded the EPC contract valued Rs.40,000 million to BHEL. Coal linkage agreement has been signed with Mahanadi Coalfields Ltd. Financial closure has been achieved for the Rs.55,000 million project in June 2010. It may be noted, the project was initially mooted long time back and was awarded by P V Narashima Rao government and now revived after YS Rajasekhar Reddy government came to power.
Materials for boiler and electrostatic precipitators have started reaching here from BHEL units located at Tiruchi and Ranipet in Tamil Nadu. Steag Energy Services India (a German based company) is likely to operate and maintain the project.