Reliance Power and China Datang ink deal
India's Reliance Power announced today it had signed a deal with China Datang Corp to develop and operate power and energy projects in the energy-hungry South Asian nation and abroad.business Updated: Aug 24, 2012 19:07 IST
India's Reliance Power announced on Friday it had signed a deal with China Datang Corp to develop and operate power and energy projects in the energy-hungry South Asian nation and abroad.
The companies plan to develop Reliance's three coal mines in Indonesia and maintain and operate power plants in India and other markets, said a statement, which did not disclose financial details.
State-run China Datang has an installed generation capacity of 105,896 megawatts -- equalling more than half of India's current generation capacity -- and China is keenly eyeing opportunities in its Asian neighbours.
"The strategic partnership provides us a platform to expand into emerging markets like India and Indonesia, which hold enormous business opportunities," China Datang said in the statement.
India is keen to boost its power and electricity to meet growing demand from businesses and household consumers, particularly after a recent monster power grid failure that affected hundreds of millions of Indians.
The government is aiming for $400 billion of private and public investment in the power sector over the next five years.
Friday's deal is the latest in a series between Reliance Power and companies in China, India's largest trading partner.
The Indian firm, controlled by billionaire Anil Ambani, secured $1.1 billion in July in finance from three Chinese banks for a project in central India.
It also signed a preliminary deal with wind turbine maker China Ming Yang to develop a large portfolio of clean energy projects in India.
In October 2010, Reliance ordered $8.3 billion in equipment and services from Shanghai Electric Group Co, one of China's biggest power equipment suppliers.