Two new ABB subsidiaries in India

Asea Brown Boveri, the giant electricals group, has an eye on rapid expansion in India. After having concentrated almost entirely, until recently, on equipment manufacture and supply for the power generation industry and for the railways, the group is now diversifying into power generation and financing activities.

With a view to giving these activities better shape, the group is creating two new companies - ABB Energy Ventures, and ABB Financial Services.

ABB Energy Ventures, a subsidiary of the global group, has been investing in the equity capital of power projects in India. These include:

• the 325 MW GVK group power project at Jegurupadu in Andhra Pradesh
• the 1,070 MW Daewoo Power's Korba (East) project in Madhya Pradesh, in which ABB has taken a 50 Per cent stake
• the 1,050 MW Videocon power project at Chennai in Tamil Nadu
• the 500 MW Pench power project in Madhya Pradesh
• the 250 MW ST-CMS power project at Neyveli in Tamil Nadu (in which ABB and non-resident Indians together hold a 50 per cent stake)

     ABB Financial Services will route ABB group investments into India, some of them via tax-friendly countries.