DPSC is now controlled by Srei Infrastructure and India Power Corporation Ltd, a joint venture between Srei Infrastructure and Bhaskar Silicon that took over management from Andrew Yule.
BHEL Executive Director (East) Rajiv Kumar said the contract has been signed and the project would be executed shortly.
He said BHEL has also bagged the contract for the 450-MW (150MWx3) thermal power plant at Haldia, executed by IPCL at an estimated cost of Rs 2,400 crore.
The DPSC power plant is likely to be executed in the next 36 months and the Haldia plant would require another two years.
Kanoria said the company had received possession of 155 acre of a total 300 acre required for the project.
Asked about financing the projects, Kanoria said the debt to equity ratio would be 70:30. "We will begin the process of financial closure for DPSC project shortly."
DPSC has already applied to the Centre for coal linkage for the project.
DPSC is one of the country's oldest power distribution firms, supplying 125 MW in a 620 sq km area in the industrial belts of West Bengal and Jharkhand, and produces 42 MW.