Bharat Heavy Electricals (BHEL) has inked memorandum of understanding (MoU) with NTPC to set up world's most efficient and environmental friendly coal-fired power plant.

The MoU has been signed for forming a joint venture (JV) to set up a 800 MW Technology Demonstration Plant (TDP) at NTPC's existing power plant in Sipat, Chhattisgarh.

The demonstration plant will be based on the Advanced Ultra Super Critical (AUSC) technology which marks a improvement in operational parameters over contemporary supercritical technology.

The plant will be the most efficient power plant in the world, once it becomes operational, resulting in reduction of carbon-dioxide emission by about 20 percent as compared to the conventional sub-critical technology.

The demonstration of the research and development (R&D) technology developed by the consortium is being planned by BHEL and NTPC as the next phase of the overall technology development programme.