• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy
• Books

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

New Delhi, April 1 BGR Energy Systems has entered into a licensing pact with a subsidiary of US-based equipment supplier Foster Wheeler for manufacturing and marketing of steam boilers.

The Chennai-based company on Wednesday said it plans to invest Rs 500 crore for putting up a steam boiler manufacturing facility in the country.

Under the pact, BGR Boilers Pvt Ltd, a special purpose company, has entered into a license agreement with Foster Wheeler North America Corp, a subsidiary of Foster Wheeler’s Global Power Group, USA.

“This partnership with Foster Wheeler to manufacture coal boilers will increase the value of in-house contribution in our EPC projects as well as offer quality products of world repute to the Indian customers,” BGR Energy Systems Chairman and Managing Director, Mr B.G. Raghupathy.

BGR Boilers will invest Rs 500 crore over the next two years for putting up a steam boiler manufacturing facility to support 5,000 MW power generation, Mr Raghupathy said. He said the company will use 60-70 per cent debt and accruals for the rest to fund the plant.

“We have shortlisted three sites, one each in Gujarat, Andhra Pradesh and Tamil Nadu, to set up the plant. We will take two to three months to decide on the final location,” he said. The facility would take about two years from now to be fully operational. “It is expected to attain full capacity in five years time,” he added.

The licence agreement grants to BGR boilers an exclusive licence and rights for the Indian market to design, manufacture and sell sub-critical coal-fired steam generators (boilers), super-critical coal fired steam generators (boilers).

More Stories on : Alliances & Joint Ventures | Power

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2009, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line