India Inc on a shopping spree

Tata eyes Siemens' Austrian power business.

In its first attempt to take over a foreign company, Tata Power is in talks with German giant Siemens for acquisition of its hydropower business in Austria.

Confirming the development, sources close to Tata Power said the company was among other interested parties. "The negotiations are in early stages," they added.

Siemens, which had put its Austrian hydropower business up for sale as a condition for its euro 1 billion take-over of Austrian technology group VA Tech, had earlier said it expected to raise $357 million (approximately Rs 1,607 crore) from the sale.

In addition to the Tata group, Siemens is negotiating with a group led by Austria's Cross Industries and Argentine manufacturer Impsa, Austrian newspaper Der Standard reported on Wednesday. Binding bids by the seven interested parties that had been shortlisted in the first round had been due by December 19.

Other interested parties included Austrian industrialist Mirko Kovats's A-Tec, a consortium led by industrialist Hannes Androsch and machinery maker Andritz, but none of them is in the race any more, the paper said.

The international operation of Tata Power has so far been restricted to an association with Tennessee Valley Authority of the US.

The company had also signed a letter of intent with the Bangladesh government for the development of a 1,000 Mw power project. Discussions with the Bangladesh government on implementation support are on. The company is also exploring opportunities in the West Asia and South Africa.

The company has lined up a huge expansion plan in the domestic market. It has recently signed an MoU to set up a 3,000 Mw project in Jharkhand.