Power ministry may float equipment mfg firm

The power ministry is considering a proposal to set up an equipment manufacturing company on the lines of Bharat Heavy Electricals (BHEL) for faster capacity addition even as generation major NTPC has forayed into the manufacture of transformers and electrical works.

"We have floated an idea to have an own company like BHEL. At present, utilities are in a race to get more equipment. This way, we can cope with more orders," Power Minister Sushil Kumar Shinde said.

The aim is to reduce the time of installing a project from 4-5 years at present to three years, he added.

Shinde did not elaborate whether the ministry was planning a separate company to be a competitor to BHEL or it would be part of NTPC.

When queried on the matter, Power Secretary R V Shahi refused to give any details. "It is just an idea. It is too early (to say)," he said.

When asked whether NTPC was working on any such plan, chairman and managing director T Shankarlingam said the company has entered into a tie-up with a Kerala government firm to manufacture and sell transformers.

"We have signed an expression of interest with Transformers and Electricals, Kerala (TELK). This would be a joint venture for transformers and other equipment," he said.

Shankarlingam said some existing facilities of TELK would be upgraded, but did not give any investment figures