Date:03/12/2008 URL: http://www.thehindubusinessline.com/2008/12/03/stories/2008120351790200.htm

BHEL, Toshiba may tie up for transmission projects

Rs 1,000-cr business targeted in first year.

More power
BHEL’s plans for a joint venture would help the equipment major to target 37,150 MW capacity in the transmission space over the next few years.

Our Bureau

New Delhi, Dec. 2 Bharat Heavy Electricals Ltd (BHEL) is likely to firm up a joint venture with Japanese firm Toshiba Corporation to offer turnkey services in the country’s power transmission sector.

The proposed joint venture company for transmission projects is expected to take off soon, and BHEL estimates to clock business in excess of Rs 1,000 crore in the first year itself through the proposed venture, Government sources involved in the exercise said.

In September 2008, BHEL had invited expression of interest from domestic and international players to form a joint venture for executing transmission projects on an EPC (engineering, procurement and construction) basis.

BHEL’s attempts to forge a joint venture comes amid plans by the Government to add power generation capacity of 78,577 MW by 2012, which would result into an increase of inter-regional transmission capacity to 37,150 MW over the next few years.

As a step in this direction, state-owned Power Grid Corporation of India Ltd (PGCIL), which has a monopoly in the transmission sector, plans to move to the next higher voltage grid by setting up the first 1,200 kV transmission line by 2012-13.

PGCIL projects that by 2025-26, there would be around 35 units of 1,200 kV sub-stations having 1,00,000 MVA transformation capacity. BHEL’s plans for a joint venture would help the equipment major to target this capacity addition in the transmission space, according to analysts tracking the power sector.

BHEL is an established player in the field of power transmission with some major products and systems in its range of manufacture and supply in the sector. The company is the market leader in turnkey sub-station business of 220/400 kV class and is also the largest transformer manufacturer in the country with the distinction of being the only Indian company in the field of HVDC (high voltage direct current) technology.