The boiler project will be executed by a special purpose vehicle, BGR Boilers.

He said it was yet to be decided what components would be imported from Foster Wheeler and what would be produced or outsourced here.

In another development, BGR Energy has bagged a Rs.1,632-crore balance of plant (power plant equipment other than boiler and turbine generator) contract from Maharashtra Power Generation Corp (Mahagenco) for its 2x500 MW plant at Chandrapur in Maharashtra.

The scope of the contract includes design, engineering, supply, erection, testing and commissioning all BOP mechanical, electrical, civil and also the structural works.

Around 60 percent of the contract work will be done by the company, the balance being outsourced.

'We will be designing and supplying the cooling towers, chimneys, ash handling systems, water demineralisation plant and others,' the official said, adding that the order book position would keep BGR busy for the next two and half years.

For BGR, it is the second order from Mahagenco after the one it got in 2007 for the 500 MW Khaperkheda Expansion Project near Nagpur.