NTPC-BHEL secures 750 acres for power equipment facility

The Indian government has allotted 750 acres of land in the southern state of Andhra Pradesh to NTPC-BHEL Power Projects Private Limited (New Delhi) for setting up a greenfield power equipment manufacturing facility. NTPC-BHEL Power Projects is a 50:50 joint venture between NTPC Limited, formerly known as National Thermal Power Corporation Limited, and Bharat Heavy Electricals Limited.

The USD1.23 billion project will be located at Mannavaram in Chittor district. Indian Prime Minister Dr. Manmohan Singh is expected to lay the foundation stone on September 6.

The venture plans to produce turbines and generators for hydro, thermal and gas-based power plants at the facility, which is expected to be the biggest industrial sector investment in the state, after the Vizag steel plant. Land was secured at a nominal price of USD2.05 per acre.

The manufacturing facility at Mannavaram is expected to provide direct employment to 6,000 people and indirect job opportunities to 25,000 people. The unit is also expected to help in the development of about 400 allied industries in the region.

YS Rajasekhara Reddy, former Chief Minister of Andhra Pradesh, had urged BHEL and NTPC to expedite work on the facility. He has asked the company to complete the first phase of construction by 2011-12 and the second phase by 2013-14.

Officials of the state government of Andhra Pradesh also have been directed to work on developing a project plan to construct a four-lane road to link Mannavaram to the nearest national highway.

NTPC and BHEL signed the venture agreement to establish NTPC-BHEL Power Projects in December 2007, and received the certificate of incorporation in April 2008. The partnership has authorised capital of USD1.02 billion, equally subscribed to by both companies. The venture is expected to leverage the domestic and international expertise of both organisations.

Plans for the venture are to manufacture power equipment as well as undertake engineering, procurement and construction (EPC) activities of power projects in the country. While the venture company is scouting for power equipment orders, it has secured two EPC contracts.

The first order is from the state government of Delhi to undertake the erection and commissioning of the 750-MW Bamnoli power plant. The venture also will undertake EPC activities for the 500-MW Vaishali power project in Bihar.