National Thermal Power Corporation (NTPC) and Bharat Heavy Electricials Ltd (BHEL) on Monday signed a memorandum of understanding to form a 50:50 joint venture company for engineering, procurement and construction activities in the power sector.
The proposed company will jointly bid for green field power projects.
“The synergy will be mutually beneficial to both organisation s as we have a vast resource pool and expertise in our respective areas,” an NTPC official said.
The post of the chairman and managing director of the proposed company would be rotated amongst senior executives of both companies. The new venture would have executives from both companies, the official said.
NTPC has an operating capacity of 27,900 mega watt (MW) and is looking to expand its business activities. It houses around 20 per cent of the country’s installed capacity and contributes 29 per cent to power generation. NTPC plans to become a 75,000 MW-plus company by 2017, the official said.
According to the official, BHEL’s expertise in areas of energy related infrastructure and its experience in manufacturing power plant equipment will help the proposed joint venture company.