India&’s state-owned Bharat Heavy Electricals Ltd (Bhel) is poised to bag the contract to build a $1.6 billion power plant in electricity-starved Bangladesh, according to reports.

BHEL is set to sign an agreement to construct the 1,320-megawatt (MW) thermal power station in Khulna in southern Bangladesh.

BHEL outbid Larsen and Toubro (L&T) and two Chinese companies to emerge as the lowest bidder for the ‘Maitree’ (friendship) project. The Maitree project may have a final capacity of 2,640MW.

The Bangladesh India Friendship Power Company Ltd (BIFPCL) — a 50:50 joint venture between Indian power generation major NTPC and Bangladesh Power Development Board (BPDB) –- had invited bids for turnkey construction of the 2 X 660 coal-fired thermal power plant coming up at Rampal, near Mangala river port.

The “Maitree Super Thermal Power Project” is set to be the largest in Bangladesh.

The joint venture company was incorporated on October 31, 2012.

China&’s Harbin Electric International Company Ltd was also in the race, but lost the bid on technical grounds.