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A joint venture to explore power avenues

business Updated: Sep 26, 2010 23:30 IST

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NTPC BHEL Power Projects Private Limited (NBPPL) is a joint venture between NTPC and BHEL, with 50:50 partnership. It was created to leverage the core strengths and synergies of its promoter companies and equipment manufacturing capacities. Its chairman and managing director C.P. Singh spoke to Hindustan Times on a range of issues. Excerpts:

What are the objectives behind this joint venture?
The power demand in the country is growing fast. The economic growth, which was earlier nine to 10 per cent, is likely to continue at the same pace. To meet that growth, adequate power capacity must be developed on to the national grid. The objective of this company is to explore, secure and execute engineering, procurement and construction (EPC) contracts for power plants and other infrastructure projects in India and abroad; to engage in manufacturing and supply of equipment for power plants and other infrastructure projects in India and abroad.

What is the business plan of your company?
To fully establish the manufacturing plant, it is proposed to invest R6,000 crore within five years. The company will have a capacity of producing power generation equipments of 5,000 MW per year by
2014-15. NBPPL plans to become a 20,000-crore company by 2020 with an investment of R6,000 crore.

What is the status of work on the manufacturing facility being set up in Andhra Pradesh?
We are investing Rs 6,000 crore to set up manufacturing facility at Mannavaram in Chittoor district of Andhra Pradesh to make boilers, turbines, generators as well as balance of plant (BoP) equipment under one roof. The Andhra Pradesn government has allotted 750 acres of land for the plant. Under the first phase, a facility for manufacturing BoP equipment will be set up. The company would also simultaneously take up EPC contracts. This project would be commissioned by March, 2013. The facility for manufacturing main power plant equipment will be commissioned by March 2015.

What is the status of order book of the Company
The present order book of approximately R400 crore is likely to touch R7000 crore by the end of the current Financial Year 2010-11.
Presently, we are executing BoP packages, including civil and structural works, for 100 MW Namrup power station in Assam. We will take up execution of 500 MW Singrauli TPS on EPC basis, in addition to a 600 MW TPS at Rayalseema for Andhra Pradesh Generation Company.

What’s the target turnover
for the company?
According to our business plan, we have targeted to achieve a turnover of R10,000 crore by the year 2014-15.
The turnover will reach R20,000 crore by the year 2020.