Country's top power generating utility NTPC has said it has signed an MoU with Bharat Forge to set up a manufacturing unit for components for power plants at an investment of Rs 3,000 crore.
The joint venture, 49 percent of which will be owned by the power generator, will manufacture castings and forgings for power plants, NTPC Chairman and Managing Director T Sankaralingam told reporters at a press meet in The two companies would have an equal equity participation in the JV. Sankaralingam said once formed, JV with Bharat Forge would also bid for tenders. After a slippage in meeting 10th plan target, the government has been promoting the idea of having more players for equipment manufacturing, being dominated by Bharat Heavy Electricals Ltd. Infrastructure firm Larsen and Toubro has also proposed to make power equipment with Japanese Mitsubishi and Toshiba.
The proposed JV would start operations within 15 months of incorporation, he added.
The Memorandum of Understanding was signed between Baba Kalyani, CMD of world's second-largest forgings maker Bharat Forge, and his counterpart in NTPC.
Sankaralingam said the MoU would not impact the company's existing agreement with BHEL, which is also for entering the equipment manufacturing space.
"There is no exclusive deal (with BHEL). We are two independent companies and are at a liberty to produce any equipment," he added.
NTPC and BHEL have signed a JV agreement to manufacture and supply equipment for power plants and other infrastructure projects in
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