New Delhi,29 Apr:Bharat Heavy Electricals Limited (BHEL) – the largest engineering and manufacturing enterprise in India in the energy-related infrastructure sector and NTPC Ltd., the largest power utility in India, have joined hands to set up a Joint Venture Company. The 50:50 JV Company will be called ‘NTPC-BHEL Power Projects Pvt. Ltd.’.The Certificate of Incorporation of the JVC was presented here today by CMD, BHEL and CMD, NTPC to Shri Sontosh Mohan Dev, Union Minister of Heavy Industries and Public Enterprises and Shri Sushilkumar Shinde, Union Minister of Power in a ceremony attended by Shri Jairam Ramesh, Minister of State for Commerce and Power , Shri Raghunath Jha, Minister of State for Heavy Industries and Public Enterprises as well as senior officers from the PMO and the Ministries of Power and HI&PE, NMCC and Planning Commission as well as both the promoter companies.
Speaking on the occasion, Shri Sontosh Mohan Dev said that the massive power capacity addition programme of the country shall provide good business opportunities to this JV Company and it can carve out a niche for itself to take up Engineering, Procurement and Construction contracts for power plant as well as supply of equipment and services for power projects.
In his address Shri Sushilkumar Shinde observed that to meet the capacity addition objective of 11th Plan, the only option that is available is to go with the strategy of ‘POOL ALL RESOURCES’ meaning that all the capacities available in the country in terms of Machines, Manpower, Infrastructure, Expertise need to be pooled and utilized at optimum level to realize the ultimate objective of ensuring that the projects are commissioned on time. Reiterating the commitment of the Government to ensure that a strong manufacturing base is created in the country for manufacturing of super critical units, he expressed confidence that the NTPC BHEL Power Projects Pvt. Ltd. will move forward in an accelerated manner to achieve its objective and thus contribute in a big way for the development of power and other infrastructure projects.
The main objective of the JVC is to carry out EPC contracts for Power Plants and other Infrastructure Projects as well as manufacture and supply of equipment in India and abroad. A Joint Venture Agreement was earlier entered into between the two companies on December 17, 2007 and a Supplementary Agreement was signed on January 11, 2008. The JVC shall have an initial authorized and paid up capital of Rs.5 Crore equally subscribed by the promoters viz. BHEL and NTPC.
Considering the large capacity addition plan in the country during the 11th and 12th Five Year Plans, there is need to expand the domestic power equipment manufacturing capability as also to strengthen related EPC activities including Balance of Plant (BoP) etc. BHEL has already expanded its capacity to 10,000 MW per annum and is currently implementing the second phase of capacity augmentation to 15,000 MW. The new JVC will further enhance the domestic capability for power plant capacity addition to help realise the Prime Minister’s call of power to each village by 2020 .
NTPC and BHEL are both Navratna enterprises of the Govt. of India having a large degree of compatibility due to common ownership, in addition to complementary strengths. While BHEL’s core competence is in engineering, manufacturing, erection and commissioning, NTPC’s expertise lies in execution of large power projects and project management. The JVC is therefore expected to leverage their respective strengths and synergies and supplement the EPC and equipment manufacturing capacities of the promoter companies.