October 16, 2008

NTPC may form a JV company with BHEL – Report

Mr Jairam Ramesh union minister of state for power said that National Thermal Power Corporation Limited is in the process of formation of a JV company with BHEL. He added that MoU, JV agreement and a supplementary agreement has been signed and registrar of companies is being approached for allotting the name of the JV company.

The new JV company would carry out engineering, procurement & construction contracts for power plants and other infrastructure projects as well as manufacture and supply equipments for power plants and other infrastructure projects in India and abroad including plant engineering, project management, quality insurance, quality control, procurement, logistics, site management, erection and commissioning services. It shall have an initial authorized and paid up capital of INR 5 crore equally subscribed by the initial promoters namely BHEL and NTPC Ltd.

Considering the large capacity addition plan in the country during the 11th and 12th Five Year Plans, there is a need to expand the domestic power equipment manufacturing capability as well as to strengthen the related manufacturing activities including balance of plant etc. EPC for power plants and other infrastructure projects is another area which needs further expansion. NTPC and BHEL intend to leverage their respective strengths and synergies to set up manufacturing facilities of energy related equipments for generation of power and also for taking up EPC of power plants and other infrastructure projects.