Top sources in BKPL told The Financial Express here that both the companies have sealed the deal a couple of weeks back. According to the deal the Thermax will supply the key Heat Recovery Steam Generator (HRSG) to the IPP for a span of 15 years at a cost of Rs 35 crore. The combined cycle plant has a capacity to produce 36 mw of power. SBI Caps has brokered the deal between the two companies. The PPA signed between BKPL and the Kerala State Electricity Board allows (KSEB) to own and operate the project for 15 years since commissioning, sources added.

BKPL has, however, dropped the plans to lease Steam Turbine Generator (STG)from the public sector Bharat Heavy Electricals Ltd following some technical difficulties. BKPL was earlier planning to lease the STG from BHEL through its parent company BSES.