The Hindu Business Line : `NTPC-TELK joint venture this month'

Kochi March 13 The proposed joint venture between NTPC and Kerala State Public sector unit Transformers and Electricals Kerala (TELK) at nearby Angamally is expected to become a reality by the month-end.

A joint working committee, which is looking into the modalities for the venture, will submit its report by the month-end.

"We are pressing ahead with the joint venture and in all probability it will be finalised by the month-end or early April", senior official sources told Business Line.

The committee comprising senior officials from NTPC, TELK and the Principal Secretary, State Industries Department, will also be giving its proposal on the NTPC's equity in the new set up, they said.

"We have reached a general understanding on the proposed joint venture. The joint working committee was constituted to look into the modalities at a high-level meeting in New Delhi recently," they said.

MUTUALLY BENEFICIAL

The NTPC, which has a lot of captive requirement, will be able to curtail the lead-time in sourcing the capital equipment. Besides, they said, TELK is the only PSU that manufactures high quality transformers of 10 MVA and above capacity in the country while the other suppliers are by and large multinational companies. Hence, there would be a cost advantage when it is manufactured in own unit, they said.

Apart from this, NTPC often needs repairing of transformers in its national network and that is done at present by taking it to the repairing facilities at distant places, which is highly expensive. The joint venture will help it to have mobile repairing units and that in turn would result in substantial saving, the officials said.

On the other hand, the TELK could be modernised and expanded besides having a captive market for its products, they added.

More Stories on : Alliances & Joint Ventures | Power | Kerala

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