India’s largest power producer, NTPC, is advancing toward construction of its first coal-fired plant in six years. Bharat Heavy Electricals Ltd. won the contract to build the 1,320-megawatt (MW) Talcher power plant in Odisha.

NTPC said it is building new plants to keep up with rising demand for electricity.

The $1 billion Talcher project will replace a smaller plant at the same site that was phased out last year. New Delhi-based NTPC will continue with its policy to not build coal-burning plants at any new locations. The company has a potential to add about 15 GW at existing plant locations.

Bharat Heavy Electricals is reportedly gearing up for new orders. The company said it sees a tender pipeline of 7.7 GW of coal-fired power projects this year, including NTPC’s Talcher plant.