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Alstom may join new NTPC-Bhel venture

Alstom may join new NTPC-Bhel venture
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First Published: Wed, Apr 30 2008. 05 54 AM IST

New enterprise:Alstom already manufactures boilers, but is now said to be interested in making turbines and generators.
New enterprise:Alstom already manufactures boilers, but is now said to be interested in making turbines and generators.
Updated: Mon, Aug 25 2008. 06 08 PM IST
New Delhi: Alstom Projects India Ltd may partner with NTPC-Bhel Power Projects Pvt. Ltd to manufacture turbines and generators.
The new firm is a 50:50 joint venture (JV) created by Bharat Heavy Electricals Ltd (Bhel) and NTPC Ltd to carry out contracts for engineering procurement and construction of power projects. It will also manufacture power generation equipment in the country.
New enterprise:Alstom already manufactures boilers, but is now said to be interested in making turbines and generators.
“A top-level team from Alstom had met us for their participation in this new JVcompany to manufacture turbines and generators. They already manufacture boilers, they are now interested in manufacturing turbines and generators as well. By September, the details are expected to be firmed up,” said a power ministry official, who did not want to be identified.
Alstom’s need to partner stems from the Indian government’s plan to restrict overseas equipment manufacturers from bidding for domestic projects unless they have a manufacturing base in India.
Alstom’s country communications director did not respond to the questions emailed by Mint.
“The new JV will have to partner for technology with players such as Alstom, Siemens or GE. The Alstom partnership in the new JV is logical as they already have an existing relationship with Bhel and this is what they are trying to leverage in the new JV,” said a New Delhi-based analyst, who did not want to be identified citing commercial considerations.
The new company has a paid-up capital of Rs5 crore and plans to manufacture boilers at Visakhapatnam (Andhra Pradesh), turbines and generators at Pune (Maharashtra), and the balance of plantequipment at Durgapur (West Bengal).
Mint had reported on 6 April 2007 that NTPC may set up a subsidiary to enter power equipment manufacture.
“This new venture should have been set up long time back. It has been delayed by 15 years,” according to Jairam Ramesh, minister of state for power and commerce.
“We need more than one power generation equipment manufacturer in the country,” added T. Sankaralingam, chairman and managing director of NTPC. “The new company will have to competitively bid to supply equipment to our projects.”
India has a power generation capacity of 141,000MW and plans to add another 78,577MW by 2012.
In the 10th Plan period (2002-07), only 20,950MW of generating capacity has been added, against a target of 41,110MW, due to the limited power generation equipment manufacturing capacity that exists in the country.
Several companies, including Mitsubishi Heavy Industries Ltd, Toshiba Corp., Hitachi Ltd, Dosan, Dongfang Electric Corp., Siemens AG, Russia’s LMZ and Technoprom have said they would be interested in setting up manufacturing facilities in India.
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First Published: Wed, Apr 30 2008. 05 54 AM IST