NTPC and BHEL in JV
NTPC Ltd. is in the process of formation of a Joint Venture Company (JVC) with BHEL. Memorandum of Understanding, Joint Venture Agreement and a Supplementary Agreement has been signed and Registrar of Companies is being approached for allotting the name of the JV Company.
The JVC would carry out engineering, Procurement & Construction (EPC) contracts for Power Plants and other Infrastructure Projects as well as manufacture and supply equipments for power plants and other infrastructure projects in India and abroad including plant engineering, project management, quality insurance, quality control, procurement, logistics, site management, erection and commissioning services. The JVC shall have an initial authorized and paid up capital of Rs.5 crore equally subscribed by the initial promoters viz. BHEL and NTPC Ltd.
Considering the large capacity addition plan in the country during the 11th and 12th Five Year Plans, there is a need to expand the domestic power equipment manufacturing capability as well as to strengthen the related manufacturing activities including Balance of Plant (BOP) etc. EPC for power plants and other infrastructure projects is another area which needs further expansion. NTPC Ltd. and BHEL intend to leverage their respective strengths and synergies to set up manufacturing facilities of energy related equipments for generation of power and also for taking up EPC of power plants and other infrastructure projects. Accordingly, NTPC Ltd. and BHEL intend to work jointly to complement their respective strengths through formation of a JVC.
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