BHEL, NTPC form power JV
NTPC and BHEL form joint venture to synergise their operations to set up power projects.
By PTI |
NEW DELHI: The tussle between generation utility NTPC Ltd and equipment supplier BHEL over setting up another manufacturing company appears to have ended with the two public sector firms forming a joint venture to synergise their operations to set up power projects.
NTPC, the country's largest power utility, and BHEL, the biggest engineering and manufacturing firm, have signed a memorandum of understanding to carry out engineering, procurement and construction activities in the power sector on "mutually beneficial terms".
"Through the JV company, to be owned by BHEL and NTPC on 50:50 equity participation, the two companies will work jointly to complement their respective core strengths in the power sector," a statement from BHEL said here.
NTPC and power ministry had earlier partially blamed BHEL for delay in supplying equipments, resulting in slippage of 10th plan capacity addition target of 41,000 MW by nearly 50 per cent. BHEL, however, had denied such allegations and instead accused NTPC of not placing contracts on time.
Irked by delays in supplying equipment by BHEL, the power ministry had even asked NTPC to get into manufacturing. The company has since then acquired a 44 per cent stake in Transformers and Electricals Kerala (TELK) and also looked at acquiring Tungbhadra Steel Products Ltd to enhance its own manufacturing capacities.
BHEL chairman and managing director A K Puri and his NTPC counterpart T Sankarlingam signed the MoU.
NTPC, the country's largest power utility, and BHEL, the biggest engineering and manufacturing firm, have signed a memorandum of understanding to carry out engineering, procurement and construction activities in the power sector on "mutually beneficial terms".
"Through the JV company, to be owned by BHEL and NTPC on 50:50 equity participation, the two companies will work jointly to complement their respective core strengths in the power sector," a statement from BHEL said here.
NTPC and power ministry had earlier partially blamed BHEL for delay in supplying equipments, resulting in slippage of 10th plan capacity addition target of 41,000 MW by nearly 50 per cent. BHEL, however, had denied such allegations and instead accused NTPC of not placing contracts on time.
Irked by delays in supplying equipment by BHEL, the power ministry had even asked NTPC to get into manufacturing. The company has since then acquired a 44 per cent stake in Transformers and Electricals Kerala (TELK) and also looked at acquiring Tungbhadra Steel Products Ltd to enhance its own manufacturing capacities.
BHEL chairman and managing director A K Puri and his NTPC counterpart T Sankarlingam signed the MoU.
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