BHEL, NPCIL to float N-power equipment JV

NEW DELHI: Power equipment major BHEL and Nuclear Power Corporation of India (NPCIL) on Friday signed a memorandum of understanding (MoU) for floating of a joint venture (JV) company. The JV company will undertake manufacturing of nuclear power generation equipments. The new company will also tie-up with an international company for technical support in this area.

According to the terms of the JV, BHEL will provide financial support while NPCIL will provide technical expertise, a source said. Financial and technical terms of the JV would be formally decided at a later date, it added.

“The boards of the two companies have approved the formation of the JV, which would be operational by October this year,” BHEL chairman and managing director K Ravi Kumar said. The JVC also plans to cater to the needs of other companies which may venture into nuclear power after the Indo-US nuclear deal. It would also be free to participate in open tenders globally.

The JVC will explore and evaluate the various technological options available for steam turbine generator sets of 700 mega watt (mw) rating and above. It would start manufacturing 1,100 mw and 1,500 mw equipment at a later date. “The development of indigenous vendors has ensured long-term support to the power stations in case of any problems and availability of spares for the life cycle of the projects and can avoid Dabhol like situation,” heavy industries minister Sonotosh Mohan Dev said. The JV will not set up a new plant and instead a new unit will be added to the existing BHEL plant at Bhopal or Thiruchirapalli.


ref:
http://economictimes.indiatimes.com/News/News_By_Industry/BHEL_NPCIL_to_float_N-power_equipment_JV/articleshow/2927050.cms