NTPC, Bharat Forge tie up for Rs 3,000 crore equipment JV
The 51:49 joint venture, where Bharat Forge would hold the majority shareholding, will manufacture castings and forging for power plants.
By TNN |
NEW DELHI: Power generation major NTPC has signed an MoU with Bharat Forge to set up a manufacturing unit of components for power plants with an investment of Rs 3,000 crore.
The 51:49 joint venture, where Bharat Forge would hold the majority shareholding, will manufacture castings and forging for power plants, NTPC chairman and managing director T Sankaralingam said.
The proposed JV would start operations within 15 months of incorporation, he added. The MoU was signed between Baba Kalyani, CMD of world’s second-largest forging maker Bharat Forge, and the NTPC head. Mr Sankaralingam said the MoU would not interfere with NTPC’s existing deal with Bhel. “There is no exclusive deal with BHEL. We are two independent companies and are at liberty to produce any equipment,” he added.
The 51:49 joint venture, where Bharat Forge would hold the majority shareholding, will manufacture castings and forging for power plants, NTPC chairman and managing director T Sankaralingam said.
The proposed JV would start operations within 15 months of incorporation, he added. The MoU was signed between Baba Kalyani, CMD of world’s second-largest forging maker Bharat Forge, and the NTPC head. Mr Sankaralingam said the MoU would not interfere with NTPC’s existing deal with Bhel. “There is no exclusive deal with BHEL. We are two independent companies and are at liberty to produce any equipment,” he added.
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NTPC and BHEL have signed a JV agreement for carrying out engineering, procurement and construction (EPC) activities in the power sector for both domestic and overseas markets. Mr Sankaralingam said the new venture with Bharat Forge would also bid for tenders.
After a slippage in meeting the 10th Plan target, the government has been promoting the idea of having more players for equipment manufacturing, being dominated by BHEL. Infrastructure firm Larsen and Toubro (L&T) has also proposed to make power equipment with Japanese Mitsubishi and Toshiba. The government is considering to provide the private sector some projects on a nomination basis the way it is given to Bhel for absorbing a new technology.
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