Business Daily from THE HINDU group of publications
Tuesday, Sep 11, 2007
ePaper
Business Daily from THE HINDU group of publications Tuesday, Sep 11, 2007 ePaper |
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Corporate
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Alliances & Joint Ventures
Our Bureau New Delhi, Sept. 10 NTPC Ltd, the country’s largest power generator, and equipment major Bharat Heavy Electricals Ltd (BHEL), have signed a memorandum of understanding to form a joint venture company to carry out engineering, procurement and construction (EPC) activities in the power sector on “mutually beneficial terms.” “Through the joint venture company, to be owned by BHEL and NTPC on 50:50 equity participation, the two companies will work jointly to complement their respective core strengths in the power sector,” a statement from BHEL said here. The development comes on the backdrop of an ongoing tussle between the two state-owned companies over NTPC’s proposed move to foray into BHEL’s home turf of equipment manufacturing. NTPC and Power Ministry had passed on much of the blame for the slippage of the Tenth Plan capacity addition target on BHEL by citing “delays” in supply of equipments by the latter. Formal Partnership
The BHEL Chairman and Managing Director, Mr A.K. Puri, and NTPC’s Chairman and Managing Director, Mr T. Sankaralingam, signed the MoU on Monday. The post of CMD of the proposed joint venture company shall be rotated amongst the senior officials of NTPC and BHEL, an NTPC statement said. NTPC, as a generation utility, and BHEL, as an EPC contractor, have worked together on several domestic projects earlier, though without a formal partnership in place. BHEL has designed and manufactured equipment that accounts for about 70 per cent of NTPC’s installed capacity. “The company (BHEL) has so far supplied modern power generating equipment of various ratings corresponding to nearly 19,000 MW for NTPC projects through international competitive bidding route,” the BHEL statement said. The MoU would give an advantage to BHEL, which is set to introduce 800 MW thermal sets with supercritical parameters. “BHEL has equipped itself to produce thermal power equipment for 800 MW sets and above, suited to Indian conditions, using domestic as well as imported coal,” the statement said. Operating Capacity
BHEL is currently working on an expansion of its manufacturing capacity from 6,000 MW to 10,000 MW by end of this year at an investment of Rs 1,200 crore, which is set to be ramped up to 15,000 MW over the next three years in light of the generation capacity addition target of 78,000 MW set for the Eleventh Plan.
More Stories on : Alliances & Joint Ventures | Power | Bharat Heavy Electricals Ltd
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