NEW DELHI, May 1 (UPI) -- Two state-run Indian firms have inked a pact to form a new company to undertake manufacturing work for power plants.
Bharat Heavy Electricals Ltd. and National Thermal Power Corp. announced they have formed a joint venture to undertake equipment manufacturing and engineering procurement and construction work for power projects.
The proposed company would make a large investment in the new power plants for the next five years to set up manufacturing capacity to produce equipment totaling 4,000 megawatt annually, The Business Line newspaper reported Thursday.
"This joint venture will leverage the strengths and synergies of both companies," Ravi Kumar, chairman and managing director of BHEL, said.
The company is looking to set up units at a port-based location either in Andhra Pradesh or Maharashtra states, with sites in West Bengal state also under consideration, he said.
The two companies entered into the joint venture agreement on Dec. 17, 2007, and a supplementary agreement was signed recently, the company official said.
