BHEL, NTPC JV Company Incorporated, To jointly execute EPC Contracts and Manufacture and Supply Equipment in India and Abroad

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 Sh. Sontosh Mohan Dev, Honble Union Minister of Heavy Industries and Public Enterprises and Sh. Sushil Kumar Shinde, Honble Union Minister of Power in a ceremony attended by Sh. Jairam Ramesh, Honble Minister of State for Commerce and Power, Sh. Raghunath Jha, Honble Minister of State for HI and PE as well as senior officers from the PMO and the Ministries of Power and HI and PE, NMCC and Planning Commission as well as both the promoter companies.

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 Honble Prime Ministers 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 BHELs core competence is in engineering, manufacturing, erection and commissioning, NTPCs 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.