Toshiba, O P Jindal Group form joint venture to manufacture steam turbines
07 May 2008
Mumbai: Toshiba Corporation of Japan has entered into an agreement with the OP Jindal Group to set up a joint venture to manufacture and market super-critical steam turbines and generators for thermal power plants. The joint venture, to be set up by June this year, will compete with public sector leader BHEL and engineering giant L&T who dominate the Indian market now.
The new company will have an initial capital of $50 million, of which Toshiba would hold 75 per cent and the OP Jindal Group 25 per cent - to be held by group companies JSW Steel Limited (5 per cent) and JSW Energy Limited (20 per cent).
The manufacturing operations are expected to start in September 2009 and the companies are currently deciding on the location.
Toshiba, which already has a presence in India, had won a major contract to supply five large super-critical steam turbines and generators to Tata Power, India's largest private power sector utility.
The scope of the joint venture includes design, manufacture, marketing and maintenance services of mid- to large-sized steam turbines and generators, ranging in size from 500-megawatts (MW) to 1.000MW that will be deployed in highly efficient supercritical thermal power plants.
"This alliance is aimed at giving us an advantage in the Indian energy sector. The JV is aimed at responding to expanding electricity demand in tandem with India's economic growth," S S Rao, joint managing director and CEO, JSW Energy Limited, said.
