The Singareni Collieries Company (SCCL) signed an agreement with Bharat Heavy Electricals (BHEL) on 11 March, 2025 for the construction of an 800 MW ultra-supercritical thermal power plant at Pegadapalli, Mancherial district.

The project, set to be completed in 40 months, will be built alongside the existing 2×600 MW facility. BHEL will supply boilers, turbines, and generators while also undertaking civil works. Though the official contract period is 48 months, SCCL has urged completion within 40 months, allowing minor works beyond that timeframe.

The agreement was signed in the presence of SCCL Directors D Satyanarayana Rao, LV Suyanarayana, and K Venkateshwarlu, alongside BHEL officials Parthasarathi Das and Jogesh Gulati. The existing 1,200 MW project, commissioned in 2016, has been supplying about 70 million units of power to Telangana. It has also consistently achieved the highest plant load factor (PLF) among public sector thermal power projects in India.