The Hindu Business Line : Kerala's Transformers & Electricals sets up joint venture with NTPC

POWERING AHEAD: Mr T. Sankaralingam, CMD of NTPC, and Mr T. Balakrishnan, Principal Secretary, Industries Department, exchanging documents for the TELK- NTPC joint venture, in the presence of the Chief Minister, Mr V.S. Achuthanandan, at a function in Angamally, on Saturday. — Vipin Chandran

Kochi June 23 The state-owned Transformers and Electricals Kerala Ltd (TELK) and NTPC have signed a joint venture business contract for manufacturing and repairing of high voltage power transformers and associated equipment.

An agreement in this regard was signed between the Principal Secretary, State Industries Department, Mr T. Balakrishnan; the NTPC Chairman and Managing Director, Mr T. Sankaralingam; and the Chairman and Managing Director of TELK, Dr P.T. Nandakumar; in the presence of the Chief Minister, Mr V.S. Achuthanandan, and the Industries Minister, Mr Elamaram Kareem on Saturday.

TELK would have the controlling stake of 51 per cent in the joint venture and NTPC would have 44.6 per cent. The upgradation and improvement plan would be implemented in a phased manner and the first phase would focus on achieving the transformer manufacturing capacity to a level of 4,500 MVA. With this, 10-12 high capacity transformers could be manufactured and 2-3 transformers can be repaired per year.

The second phase will focus on achieving transformer-manufacturing capacity to a level of 10,000 MVA, including 1,500 MVA of service capability. The total investment for the first two phases is estimated at Rs 190 crore and this would be financed at a debt equity ratio of 65:35.

Enormous synergy

Mr Sankaralingam said the joint venture between NTPC and TELK is a historical development as this is going to create enormous synergy in the operations of the two companies. The joint venture company should aim at manufacturing 765 kva or even higher capacity transformers and equipment.

The joint venture would now become a number one company in India and it should aim to attain first position globally, he said. It may also consider setting up an R&D centre in the State and can collaborate with academic and other institutions in this area, he added.

The Chief Minister said the joint venture would scale new heights and emerge as a globally recognised entity in the coming years. Referring to the performance of the State PSUs, he said the number of profit-making PSUs had gone up to 24 from 12 and had earned Rs 97 crore as profit to the State exchequer. The Government had also taken steps for the modernisation and expansion of various state-owned companies as part of reviving them, he added.

The third phase of the upgradation and improvement plan of the joint venture would involve mobile repair facility, which would enable on-site repair of large power transformers in a dust and humidity controlled environment. The facility can take up complete dismantling, repair, assembly and testing facility at owners site.

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