State-run BHEL today said it has received a contract from Bhutan for setting up a 720 MW hydro power plant at an estimated investment of Rs 750 crore.

"BHEL has bagged a contract for executing the 720 MW Mangdechhu Hydroelectric project for Mangdechhu Hydroelectric Project Authority (MHPA), Bhutan," the company said in a statement today.

The order envisages manufacture, supply, erection and commissioning of equipment for the 720 MW Mangdechhu Hydroelectric project, the statement said.

The value of the contract is Rs 594 crore plus Balance of Plant on cost plus basis, with which, the total contract value will be in the range of Rs 730 to Rs 750 Crore.

Balance of Plant include coal and ash handling plants in the power station.

The project is being set up under a bilateral agreement between the Indian government and the Royal Government of Bhutan.

BHEL has also installed its equipment in Chhukha (336 MW), Kurichhu (60 MW) and Tala (1020 MW) hydroelectric projects in Bhutan.

For the present contract, four turbines and generators of 170 MW each and associated equipment will be manufactured and supplied by BHEL's Bhopal facility while the Control system will be manufactured and supplied by the company's Electronic Division at Bangalore, the statement said.