BS reported that India’s largest power equipment manufacturer Bharat Heavy Electricals Ltd is considering floating a separate subsidiary company for power generation projects.
The move, part of its diversification plan is aimed at consolidating the equity investment it had taken earlier in various generation projects of around 8,800 MW capacity in different states.
The company had committed 26% equity participation in multiple supercritical thermal power projects in Tamil Nadu, Karnataka and Maharashtra and is planning similar stakes for projects in Gujarat and MP.
Mr K Ravi Kumar former CMD told Business Standard that “We are doing 11 units of 660-800 Mw, which will give us 8,800 Mw. So, if you get a close to 10,000 Mw power company, it is good. If the projects go well and if the same trend continues, we can hive off a BHEL power subsidiary.” He added that “There has been serious discussion on this matter. These days, small companies are putting up plants. So, why cannot BHEL run it efficiently? This is diversification.”
Mr Kumar said that “Five units in Tamil Nadu and Karnataka are already in advanced stages. We have already obtained land. We have applied for coal blocks. The projects will take approximately four-five years to be completed.”
He also said floating the subsidiary company would require changes to be made in the company’s Articles of Association. BHEL had formed a joint venture company in April last year with power generator NTPC Ltd NTPC BHEL Power Projects Private Ltd to take up engineering, procurement and construction contracts for power equipment.
BHEL has signed two separate Joint Ventures with the Karnataka Power Corporation Ltd and Tamil Nadu Electricity Board and a memorandum of Understanding with the Maharashtra State Power Generation Company Ltd for setting up seven units of 660MW to 800 MW for supercritical thermal power plants on a Build, Own and Operate basis. Another four units of similar sizes are being planned in Gujarat and MP. The projects require an investment of over 52,000 crore and are being financed on 80% debt and 20% equity ratio. While 26% of the equity portion INR 2,745 crore is being financed by BHEL another 26% will come from the state entities. The remaining 48% is being sourced from financial institutions.
(Sourced from www.steelguru.com)
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment