BHEL plans to build two thermal power plants in Russia with an investment of Rs 3,000 crore, to expand its global footprint.

Construction of the two 240 MW units of a power plant in Ulan Ude, will be taken up by BHEL as part of the settling of a debt India owes Russia. A formal agreement is expected to be signed in December, when the Russian President comes to New Delhi for bilateral talks.

According to the plan, BHEL will undertake the entire construction of the plant on EPC basis and will later hand it over to the Buryatian government for running. The company will partner with a state-owned entity of Buryatia for the project. Once the two governments approve the terms and conditions, construction work will commence.

The total investment in the project is expected to be in the range of $600 million. BHEL will put in half of the project cost. In Russia's case, its contribution of $300 million will be paid out of a Soviet-era debt that India owes Russia.