BHEL to set up plant in Sudan
India signs agreement with Sudan for a $350 million Line of Credit for setting up a 500 MW power project by BHEL.india Updated: Jan 23, 2006 16:55 IST
In the second largest investment after ONGC Videsh Ltd's one billion dollar plans in Sudan, India on Monday signed an agreement with the African nation for a $350 million Line of Credit for setting up a 500 MW power project by state-run Bharat Heavy Electricals Ltd.
The total project cost of about $500 million is being shared by the two countries, with the Exim Bank of India giving a credit line of $350 million.
In addition, the two countries also signed another loan agreement of $41.9 million for Singa-Gedarif transmission line and sub-station.
BHEL will set up the project on turnkey basis with crude oil-fired boilers. The contracts for equipments would be placed within a month, BHEL Chairman and Managing Director AK Puri said.
The government of Sudan plans to expand the project to 3,000 MW to meet the country's fast growing electricity needs. This would open up more opportunities for BHEL, Sudan government officials said, adding they were keen that Indian companies set up manufacturing base there to tap the African and Middle-east market.
After OVL's investment in exploration blocks, this project would be the second largest investment by Indian companies in that country. OVL is also understood to be eyeing additional oil blocks and an oil refinery. Other than equity participation in three exploration blocks, ONGC has also completed a 741 km long oil pipeline in Sudan.
First Published: Jan 23, 2006 15:03 IST