Power equipment maker Bharat Heavy Electricals Ltd (BHEL) will be signing a joint venture agreement with Madhya Pradesh Power Generating Company (MPPGCL) on Thursday to set up two 800 MW supercritical thermal power plants in Khandwa. The BHEL and MPPGCL will set up the joint venture with initial equity equally subscribed by both the partners. Subsequently, the equity would be diluted so that the stake of both BHEL and MPPGCL is reduced to 26 per cent each and the balance equity of 48 per cent is subscribed to by financial institutions or banks and other partners. The joint venture would place the order for setting up of the power project on BHEL on a nominated basis. Official sources said that the first unit of the coal-based power plant would come up within 48 months of the order being placed on BHEL, while the second unit would get operational within 54 months. Supercritical technology ensures lower coal consumption, lower emission, eco-friendly and efficient power generation. The project also qualifies for carbon credits under clean development mechanism (CDM). The BHEL has been promoting joint venture companies to build, own and operate supercritical thermal power plants in association with State utilities.