India Works with Foreign Power Companies in Drive for 78,000 Megawatts

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Researched by Industrial Info Resources (Sugar Land, Texas)--Cooperation between Indian and international companies in the power sector continues to grow as India pushes to achieve its target of an additional 78,000 megawatts (MW) of capacity for the national grid by 2011.

India's largest engineering and construction company, Larsen & Toubro (OTC:LTOUF) (L&T), has signed a joint venture agreement with Japan's Mitsubishi Heavy Industries (OTC:MHVYF) (Tokyo) to set up a manufacturing plant to supply super-critical steam turbines and generators for power plants with a capacity of 500 MW to 1,000 MW. Manufacturing operations at the $215 million facility will start in 2009. Both companies will invest $73 million in the project and the balance will be raised as a loan. The probable site for the project is at Hazira in Gujurat. Mitsubishi will hold 49% of the project.

L&T already has an agreement with Mitsubishi for the manufacture of super critical boilers. As 60% of India's new power projects are to be coal fed, the market for turbine and boiler manufacturers is strong.

The Essar Group, with a current construction schedule of the three power stations rated at 1,200 MW each, has placed an order with China's Harbin Power for equipment for two of the projects. Harbin Power has a production capacity of 30,000 MW per year.

Essar will import four boiler turbo generator packages and other materials for the Essar Power's projects at Jamnagar in Gujurat and Mahan in Madyha Pradesh. The order has an estimated value of $1 billion. The total investment in each power station will be about $1.2 billion.

Essar is developing a coal mine with the Aditya Birla Group to provide the coal feed to Mahan and is negotiating for supplies of imported coal for Jamnagar.

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