NTPC, BHEL JV may bid for UMPPs

The 50:50 joint venture between NTPC and power equipment manufacturer Bharat Heavy Electricals (BHEL) is likely to bid for future ultra mega power projects (UMPPs) once the joint venture is registered by the end of this month.

"It is likely the joint venture will bid for the future ultra mega power plants," said a senior NTPC official, adding the joint venture would operate independently of NTPC and would also compete with the promoter-company.

T Sankaralingam, chairman and managing director, NTPC, said the joint venture had already identified two projects. He, however, did not disclose the projects or the investments that are likely to be made.

NTPC and BHEL had, in September last year, decided to form a joint venture to execute power projects in India and abroad. Sankaralingam said that once the joint venture is registered, the company would also consider taking in a technology partner, which could be a domestic company or an overseas firm.

NTPC is also carrying out feasibility studies for setting up a 700 Mw power plant in Nigeria. The company had promised to set up power plants in the hydrocarbon-rich African country in exchange for liquefied natural gas (LNG). NTPC requires gas to fire its power plants in India. "We are in talks with the new government, and things should be ready in another six months," Sankaralingam said.