Seeking speedy approvals and friendly policies from the Indian government, China's biggest power equipment company, Shanghai Electric, said on Monday that it is ready to invest in India's power sector by setting up a manufacturing facility for power equipment.
Speaking to the Hindustan Times, Shanghai Electric Power Generation Group's president Zheng Jianhua, who is in the capital to announce opening of the Shanghia Electric India's office, said, "It took us more than two years to secure clearances for setting up a representative office in India."
Announcing that its talks for a joint venture facility in India with French power major, Alstom to manufacture boilers for power projects was in advanced stages of negotiations. Jianhua said, "Shanghai Electric and Alstom are two leaders in the sector and the coming together of these two giants will result in creating one of the world's single largest facility in India."
"We see huge business opportunity in India's power sector but the policy environment has to be conducive for this."
Pan Song, the managing director of the newly formed Shanghia Electric India Ltd, said, "India is SEC's largest overseas market where 12 power projects are under execution or completed. The total capacity of sets supplied by us has reached 20,000 mw."
Commenting on the proposed duty of 19% to be levied on imported power equipment, Song said, "This move can hurt development of India's power sector, which is very potential and promising."
Shanghai Electric has already signed a contract with Anil Ambani-led Reliance Power in 2007, worth $8.3 billion — the single largest business contract between the two nations to supply 36 coal-fired thermal power generation units to Reliance over three years.