NTPC, Bhel JV to focus on Africa

The joint venture formalized on Tuesday by state-owned generation utility NTPC and heavy machine manufacturer Bhel for planning, designing and building power plants will raise domestic power equipment-making capacity and provide a vehicle to offer package deals for grabbing opportunities in Africa, West and South-East Asia.

The joint venture aims at investing Rs 5,000 crore in its operations and is targeting capacity to supply equipment for generating 5,000-6,000 mw. The investment will be made in the debt-equity ration of 70:30. The deal was signed in the presence of power minister Sushil Kumar Shinde and heavy industries minister Santosh Mohan Deb.

"This should have been done earlier," junior power minister Jairam Ramesh said debunking criticism that such ventures will dilute Bhel's domain expertise. "It will add a third player in the country after Bhel and L&T. Bhel's 15,000 mw and L&T's 4,000 mw capacities will remain. This venture will add another 5,000-6,000 mw...there will be more competition."

"This vehicle can now offer a package deal to countries in Africa and West Asia. Bhel already has some capacity in Africa and is eyeing more contracts." he said

source:
http://timesofindia.indiatimes.com/Business/India_Business/NTPC_Bhel_JV_to_focus_on_Africa/articleshow/2996854.cms