BGR Energy signs two JV agreements with Hitachi
Chennai-based BGR Energy Systems Ltd has entered into two Joint Venture (JV) agreements worth of Rs4400 crore with Hitachi Ltd (Japan) and Hitachi Power Europe GmbH (Germany) to design, manufacture and sell steam turbines/generators and boilers for super critical thermal power generation.
With the establishment of these two ventures, the company said, BGR Energy will be the third company in India (after BHEL and L&T) to offer complete boiler, turbine-generator (BTG) solution to the Indian power industry.
Based on the agreement, Hitachi and Hitachi Power Europe will establish manufacturing and sales joint ventures for steam turbines and generators, and boilers, respectively.
The first JV which will see formation of a new company called BGR Turbines Company Pvt Ltd. It will design, manufacture, install and commission supercritical steam turbines and generators for thermal power plants. This will have manufacturing facility in Tamil Nadu with an estimated investment of Rs3000 crore. The JV with a shareholding of 74:26 (BGR Energy-74% and Hitachi Ltd-26%) will commence production in 2012 and will have capacity to manufacture 5 units per annum of 660 MW, 800 MW and 1000 MW.
BGR Boilers Pvt Ltd, the newly formed second JV company, would manufacture boilers and will have capacity to manufacture 5 units per annum of 660 MW, 800 MW and 1000 MW. Both BGR and Hitachi Power Europe will have 70:30 shares in the JV. They would invest Rs1400 crore for the project; the production will commence in 2012.
BG Raghupathy, Chairman & Managing Director, BGR Energy Systems Ltd, said: “We are currently executing EPC contracts for three units of 600 MW and we believe that this strategic alliance with Hitachi will ensure that we have a reliable and secured source of supply for BTGs (Boiler, Turbine-Generator) to meet all our EPC project requirements. We are glad that BGR Energy will contribute significantly to India’s rapid augmentation of power generation capacity.”
BGR Turbines and BGR Boilers will introduce Hitachi’s advanced design and manufacturing technologies so that they can produce highly efficient and reliable thermal power generating equipment. They will actively develop the steam turbine, generator and boiler business in India, thereby contributing to stable electricity supplies in the country.