NTPC forays into power tools mart

NTPC, the country's biggest power producer, will branch out into equipment manufacturing, with the board giving the go ahead for a joint venture with Bharat Forge, India's largest forging company.

"NTPC is positioning itself in such a way that it becomes a source of raw materials used for making the equipment and for supplying the main equipment," said a senior official.

The JV may churn out everything from castings and forgings to large turbines and generators. Talks between the state-owned firm and Bharat Forge to float a JV to produce components for power plants is progressing.

The official declined to say how much the company will invest in the new venture.

The foray is a part of the company's strategy to reduce the shortages of power equipment in the country (both main plant and balance of plant or auxiliary equipment), which is hampering the addition of power generation capacity in the country.

NTPC, which has an installed capacity of 27,904 mw and produces one-third of the country's electricity, plans to raise its capacity to over 50,000 mw in the next five years.

It is a challenging task when there is a severe shortage of all kind of equipment with BHEL, the country's leading power equipment major, unable to meet the burgeoning demand.

According to the NTPC official, NTPC has experience in power generation equipment while Bharat Forge is a leader in forgings. Bharat Forge officials were not available for comments.