Pune-based Thermax India, a leading player in the energy and environment sector, plans to invest over Rs 200 crore in the current financial year for expansion.

The company spent Rs 450 crore in the previous fiscal and it plans to use internal accruals for investment. The company has recently signed contract worth Rs 500 crore for technical transfer license agreement with US-based Babcock & Wilcox Power Generation Group.

The contract, which is for a period of 15 years, grants the company the right to engineer, manufacture and sell utility boilers of up to 800 MW in size to generate steam in thermal power plants, owned by independent power producers.

The units would be produced at Thermax's new manufacturing unit in Baroda, Gujarat. This agreement would give Thermax the right to use B&W PGG's technology.

The order book of Thermax group at December 31, 2007 stood at Rs 2,924 crore.