The joint venture of Bharat Heavy Electricals Ltd (BHEL) with Nuclear Power Corporation of India Ltd (NPCIL) and Alstom (France based company) is likely to be approved by the Union cabinet soon.
According to Spark Network each of these three companies well hold 33% equity stake. BHEL, the power equipment maker, already has a tie-up with Alstom for its boiler business.
Spark Network believes that the JV would not require much capital investment and it would function as a front-end company, responsible for marketing and engineering. BHEL would do manufacturing, with the French partner supplying some parts. The company would place orders on BHEL, which would use its Bhopal and Hardwar facilities to enhance its equipment capacity for the nuclear sector.
BHEL’s boiler capacity at Tiruchirapalli would also be used for catering to the nuclear sector. The power sector constitutes 76-77 per cent of BHEL’s total business, of which coal comprises 83 per cent, gas another three to four per cent and hydro, two per cent.
Initially, the JV would supply turbines to eight units of 700 Mw each being developed by NPCIL. The value of supplies is likely to be Rs 6,000 crore.
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