NTPC-BHEL JV mulls technology tie-up with global firm

NTPC-BHEL Power Projects Ltd (NBBPL) today said it is exploring the possibility of a technology tie-up with a foreign player, which may be offered a minority stake in the company. The move is aimed at bringing Indian power equipment manufacturing at par with international companies through the induction of modern technology. "There is always a possibility of a third partner, whenever the need arises we would take a call. We are exploring the possibility for technological tie-up with a foreign company," NBPPL Chairman C P Singh told PTI in an interview. He said, "It (the technology tie-up) may or may not be an equity partnership." NTPC-BHEL Power Projects Private Ltd is a 50:50 JV firm formed between NTPC and BHEL on April 28, 2008, for carrying out Engineering, Procurement and Construction (EPC) contracts, besides the manufacture and supply of equipment for power plants. "There is always a shortage of power equipment manufacturing units in the country," Singh said, adding that the JV would augment power generation capacity addition in the country. The company currently has an order book of about Rs 450 crore. It is targeting an order book of Rs 7,000 crore by the end of the current fiscal. At present, NBPPL is working on the 100-MW Namrup Power Station in Assam and the 726-MW combined cycle power plant being set up by ONGC Tripura Power Corporation at Palatana, in Tripura. It will also take up execution of the 500-MW Singrauli thermal power plant and the 600-MW thermal power plant of Andhra Pradesh Power Generation Corporation Ltd (APGENCO) at Rayalseema. NBPPL falls under the administrative control of the Ministry of Heavy Industries and Public Industries. The Ministry of Power has set a target for adding 78,000 MW of power generation capacity during the current XI Five-Year Plan Period (2007-12). This is likely to translate into immense business opportunities for equipment- manufacturing companies like NBPPL.