New Delhi: State-run power equipment maker Bhel will invest about Rs1,200 crore to manufacture transmission equipment in collaboration with a foreign firm, a company official said.
“We are in talks with a European and a Japanese firm to form a transmission joint venture by June 2009. We would invest about Rs1,200 crore in this project as a part of our brownfield expansion plan,” Bhel Chairman and Managing Director K Ravi Kumar said.
The company is in talks with French equipment maker Areva and Japan’s Toshiba for this joint venture.
The JV would will focus on manufacturing 765 kilo volt (KV) and 1,200 KV transmission equipment.
Bhel secured orders worth Rs10,254 crore in 2008-09 in captive power, transportation, power transmission, oil & gas and other industrial segments, he said.
The company received bulk orders for 40 transformers from Coastal Gujarat Power Ltd, a Tata Power special purpose vehicle, for executing the 4,000 MW ultra mega power project at Mundra. From the power sector alone, Bhel secured orders worth Rs44,407 crore for 17,020 MW of plants.
Bhel recorded a 6% jump in its net profit after tax at Rs3,039 crore for the financial year ended 31 March 2009, from Rs2859 crore in 2007-08.