NTPC, Bharat Forge in Rs3,000-crore power equipment joint venture
09 Feb 2008
Mumbai: State-owned power producer National Thermal Power Corporation (NTPC) has signed a memorandum of understanding (MoU) with Bharat Forge to set up a joint venture company that will produce power plant components to overcome a shortage of equipment.
NTPC, the country's biggest power generator, and Bharat Forge will invest Rs3,000 crore ($760 million) in the venture to manufacture castings, forgings, fittings and high pressure piping required for the power and other industries, Balance of Plant (BOP) equipment for the power sector etc.
The joint venture would have an equity participation of 49:51 by the company and Bharti Forge, respectively and produceJoint Venture Company, with an equity participation of 49:51 by NTPC and BFL respectively, to take up manufacture of castings, forgings, fittings and high pressure piping required for Power and other industries, balance of plant (BOP) equipment for the power sector etc.
The partners will decide on the share capital and location for the company within the next three months and the factory is likely to be set up within the next year.
NTPC plans to almost double its 28,334 megawatt capacity in the next five years to beat a shortage and meet increasing demand in the world's second fastest-growing major economy.