Bhel, NTPC to switch on JV

Bharat Heavy Electricals (Bhel) and National Thermal Power Corporation (NTPC) are planning to enter into a 50:50 joint venture to make heavy equipment required for super-critical thermal power plants.

“The joint venture between Bhel and NTPC will be finalised soon,” said Jairam Ramesh, minister of state for power.

He said the venture was significant as PSUs would play an important role in meeting the power generation target of 78,000MW in the Eleventh Plan.

The joint venture company will manufacture equipment such as boilers and turbines.

The proposed joint venture is expected to settle the conflict between Bhel and NTPC sparked by NTPC’s initial proposal to venture into power equipment manufacturing. Both the heavy industries ministry and Bhel had opposed the move.

NTPC pushed for the equipment venture, saying Bhel often delayed in supplying equipment. Bhel, however, opposed the proposal, saying it would create a conflict of interest with a generator also producing equipment.

For the super-critical thermal power plants, sources said the proposed joint venture might enter into a technical tieup with a global company under a transfer of technology clause.

The government is considering making the transfer of technology mandatory for bidders getting supply contracts for power plant equipment.

Bhel, even with its planned expanded capacity, can meet only up to 60,000MW.

Power ministry officials said the proposed joint venture would ensure the timely supply of equipment for NTPC, especially for projects planned for commissioning during the Twelfth Plan.

Bhel has designed and manufactured equipment that accounts for about 70 per cent of NTPC’s installed capacity.

Ramesh said he had set a target of adding 11,000MW in 2008-09.


source:
http://www.telegraphindia.com/1080409/jsp/business/story_9112070.jsp



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