SINGAPORE - Engineering conglomerate Sembcorp Industries has commenced commercial operation at its first power project in India.

Thermal Powertech Corporation India, which cost about US$1.5 billion ($2.03 billion), is a coal-fired power plant in which Sembcorp owns a 65 per cent stake through its wholly-owned subsidiary, Sembcorp Utilities.

Gayatri Energy Ventures, a wholly-owned subsidiary of Gayatri Projects, owns the remaining 35 per cent.

The plant has begun supplying power to the states of Andhra Pradesh and Telangana, said Sembcorp on Monday. It will help meet the increasing power demand in the southern region.

The plant has secured power purchase agreements for 900 megawatts or almost 70 per cent of its total capacity. Of this, 500 megawatts will be sold under a 25-year agreement with the Andhra Pradesh and Telangana Power Distribution Companies.

The 1,320-megawatt coal-fired power plant comprises two units of 660 megawatts each. The plant is expected to be fully operational once the second unit gets up and running in the third quarter of 2015.