GMR Energy forms JV with investor TNB Remaco
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Mumbai: GMR Infrastructure Ltd on Monday said its unit GMR Energy Ltd has tied up with Malaysia’s TNB Repair and Maintenance Sdn Bhd (TNB Remaco) to set up an operations and maintenance (O&M) joint venture for the power sector.
TNB Remaco, a specialist in power plant repair and maintenance, is a unit of Malaysia’s largest electricity utility Tenaga Nasional Bhd (TNB). GMR Energy had in May 2016 agreed to sell a 30% stake in its “select portfolio” of assets to Tenaga Nasional Bhd for $300 million (around Rs2,000 crore).
The O&M JV between GMR Energy and TNB Remaco will provide operation and maintenance services, performance improvement services, testing and diagnostic services, repair and refurbishment services for power plants in India, GMR Infrastructure said in a statement.
The JV plans to set up a refurbishment facility in India in what is TNB Remaco’s first investment outside Malaysia.
GMR Energy and TNB Remaco will “identify business opportunities in the high-potential Indian market and provide operation and maintenance services to the power plants,” the statement said.
Tenaga Nasional, one of the largest power companies in Southeast Asia, has a presence across the power generation, transmission and distribution segments. It has a total installed power capacity of 10,818 megawatts (MW) and controls 50% of the Malaysian grid’s generation capacity.
GMR Energy has power capacity of over 4,600MW across coal, gas and renewable energy-based projects.
“This (venture) would provide a renewed impetus to our energy portfolio and strengthen our relationship with our strategic foreign partner Tenaga Nasional Bhd,” G.B.S. Raju, chairman, GMR Energy said in a statement.