C P Singh, director, engineering, Bharat Heavy Electricals Ltd (Bhel) has been appointed the chairman and managing director of the newly formed NTPC-BHEL joint venture (JV) company.
The 50:50 JV company was floated by the two Navratnas of the power sector in April this year to manufacture power equipment.
The company, dubbed NTPC-Bhel Power Projects Pvt Ltd (NBPPL) will also take engineering, procurement and construction (EPC) contracts for power plants in the country and overseas.
The two power sector giants together plan to invest Rs 5,000 crore in the venture over a period of five years.
The Joint Venture company is also planning to dilute its shares upto 50 per cent by inviting private partners for carrying out strategic investments.
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The venture, for which a Memorandum of Understanding was signed between the two companies last year, is working on an initial authorized capital of Rs 5 crore and a debt-equity ratio of 70:30.
Two project sites one in the National Capital Region and one in Bihar have already been identified for locating the manufacturing units.
NTPC-Bhel power projects Ltd will have an equipment manufacturing capacity of 4,000 mw per annum which will be commissioned in the next 4-5 years.
The joint venture represents a forward integration for equipment manufacturer BHEL and a backward integration for the country's largest power generator NTPC Ltd.
Bhel already has a manufacturing capacity of 10,000 Mega watt and is in the process of increasing it to 15,000 Mw by 2012. It has bagged 48 per cent of the equipment orders for the 11,061 Mw capacity addition planned in 2008-09.
