State-run power utilities will jointly set up a high power equipment testing facility in the country at a cost of Rs 250 crore.
Power utilities NTPC, NHPC, Power Grid and Damodar Valley Corporation will set up a joint venture company to set up an online high power short circuit testing facility.
The four companies signed an agreement on April 11 for the JV company, each having 25 per cent stake.
"In the first phase, total investment from all partners is Rs 250 crore. Initially, all partners will contribute Rs 20 crore each and the rest will be borrowed. The project has a 40:60 debt equity ratio," Power Grid Corp (PGCIL) Director - Projects, S Majumdar said.
The project would have three phases and is likely to be completed in about three years.
At present, India sends all its transformers beyond 400 KV (kilo volt) overseas for testing, he said.
"In the first phase, we'll be able to test equipment beyond 400 kV (kilo Volt), 765 kV in the second phase and finally, we'll have testing of lower unit hardware in the third phase," Majumdar said.
The new company has roped in Central Power Research Institute (CPRI) to operate and maintain the facility for an initial period.
"CPRI has shown interest in having a stake and talks are still on. If it works out, each partner would have 20 per cent stake," Majumdar said.
He added that Cesi Italy, a developed testing house from Italy, has been hired as the international consultant.
"Cesi Italy would submit a detailed project outline on requirements of the testing facility
