BHEL and NTPC to float JV Company to jointly execute EPC Power Projects

Aimed at synergizing the strengths of the two Navratna giants in the power sector, 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 signed a Memorandum of Understanding (MoU) to form a Joint Venture Company (JVC). The JVC will carry out Engineering, Procurement and Construction (EPC) activities in the power sector on mutually beneficial terms.

Through the JVC, to be owned by BHEL and NTPC on 50:50 equity participation, the two companies will work jointly to complement their respective core strengths in the power sector, at a crucial juncture when the nation is looking at adding huge power generation capacities.

The MoU documents were exchanged here today, between Mr. Ashok K. Puri, Chairman & Managing Director, BHEL and Mr. T. Sankarlingam, Chairman & Managing Director, NTPC Ltd. The functional Directors on the Boards of both the companies were also present on the occasion, in addition to other senior officials of BHEL and NTPC Ltd.

BHEL designed, manufactured and commissioned equipment accounts for around 70% of NTPC’s installed capacity. The company has so far supplied state-of-the-art power generating equipment of various ratings corresponding to nearly 19,000 MW for NTPC projects, through International Competitive Bidding (ICB), against Global Tenders. NTPC, as a utility and BHEL, as an EPC contractor have worked together on several NTPC projects. BHEL is also presently executing several contracts for NTPC for equipment supply and erection, which are in various stages of progression.

BHEL has proven turnkey capabilities for execution of Thermal, Hydro, Gas and Nuclear Power Projects. Having demonstrated its track record in successfully establishing new technologies to serve the nation’s power sector, BHEL is now poised to introduce 800MW thermal sets with supercritical parameters. BHEL has equipped itself to produce thermal power equipment for 800 MW sets and above, suited to Indian conditions, using Indian as well as imported coal. In addition, the company is shoring up its capability for higher rating Hydro sets and advanced class Gas Turbines to cater to upcoming market requirements.