 "GMR Energy makes pact with TNB Remaco for maintenance JV")
TNB Remaco is Malaysia's premier specialist in power plant repair and maintenance with a proven track record of over 30 years. It is the repair and maintenance arm of Tenaga Nasional Berhad (TNB), the largest power utility player in Malaysia.
TNB had recently invested $300 million (Rs 2,000 crore) in GMR Energy to take up a 30 per cent equity stake in select portfolio of GEL assets on a fully diluted basis.
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"The O&M joint venture between GMR Energy and TNB Remaco will provide operation and maintenance services, performance improvement, testing and diagnostic, repair and refurbishment services for power plants in India," a company statement said here.
For this purpose, the JV plans to set up a refurbishment and maintenance facility in India. This will be the first time that TNB Remaco shall be investing in a facility outside Malaysia.
G M Rao, Group Chairman, GMR Group, said: "India's substantial and sustained economic growth is placing enormous demand on its energy resources... The key objective behind signing the MoU is to optimise the operations of the Indian power plants in a bid to enhance availability, output, efficiency of power plants along with power plant life."
The partnership with TNB Remaco shows that the global investors are reposing faith in the long-term growth of the Indian power sector, he said.
GBS Raju, Chairman, GMR Energy, added: "This will be the first investment of the Malaysian company in a facility outside Malayasia. This would provide a renewed impetus to our energy portfolio and strengthen our relationship with our strategic foreign partner Tenaga Nasional Berhad."
As per the 3-year MoU, GEL and TNB Remaco will identify business opportunities in the high-potential Indian market and provide operation and maintenance services to the power plants.
This joint venture is an extension for GEL to leverage the significant O&M expertise of TNB. Through this, GEL and TNB Remaco will extend their technical expertise to several power plants in India.
"This is a niche market and with increased focus on cost management by the power plants in the country, there is a vast opportunity. In addition, TNB Remaco's expertise would also facilitate GEL in improving the performance of its operational assets," the statement added.
The GMR Group has 15 power generation projects of which 10 are operational and 5 are under development and construction stages.