New Delhi, Aug 12 - Engineering and construction major Larsen and Toubro (L&T) will supply and erect boiler and steam turbine for a thermal power project that Jaiprakash Power is setting up in Madhya Pradesh.

The two companies Wednesday signed an agreement in this regard.

According to the Rs.4000-crore agreement, L&T-MHI Ltd, a joint venture between L&T and Japan's Mitsubishi Heavy Industries, will supply boiler to the thermal project coming up in Singrauli, while steam turbine will be supplied by L&T itself.

The Singrauli project comprises two 660-MW super-critical thermal power units.

The contract was awarded to L&T through international competitive bidding, the companies said in a joint statement.

'This is a very prestigious project for the group, we will be investing Rs.8,000 crore for setting up the thermal power plant and we will be adding 2,000 MW power generation capacity during the current five-year plan period ending 2012,' said Manoj Gaur, executive chairman of Jaiprakash Associates.