Mumbai: State-run Israeli company, Israel Electric Corporation, is in talks with the Andhra Pradesh Electicity Company for setting up a 3500 MW power plant. Electric Cororation will construct and manage the proposed power plant at Krishnapatnam in Andhra Pradesh, estimated to cost $10 billion.

The power plant would be coal-fired and the Israel Electric Corporation expects to reap hundreds of millions of dollars in profit, Israeli daily Ha'aretz reported.

Israel Electric Corp is the sole integrated electric utility in Israel and generates, transmits and distributes virtually all the electricity used in the Israel. It owns and operates 17 power stations including five thermal power stations and 5 combined cycle units with an aggregate installed generating capacity of 10,083 MW.

The Israeli company's chairman has written a letter to Israel's infrastructure minister Benjamin Ben-Eliezer seeking permission to participate in the Indian project.

If the deal gets through, the Israeli company would run the project for five years. Representative of the Andhra Pradesh Electricity Company are scheduled to visit Israel next week to meet Ben-Eliezer and the management of the company.

The power project would provide employment to around 5,000 people, the report said.

Israel Electric Corp was incorporated in mandatory Palestine on March 29th, 1923, as "The Palestine Electricity, Corporation Limited", which was changed in 1961 to its present name to generate, and distribute electricity sale to the consumers. Israel Electric Corp. was first registered under the name.

The Company is one of the largest industrial companies in Israel. According to the English section of its web site, as of December 31, 2004, it had total revenues of US $3.4 billion, net profit of $580 million and assets of $14.9 billion.