Haldia Energy inks equipment deal with Shanghai Electric

Haldia Energy Ltd, a wholly-owned subsidiary of the Calcutta Electric Supply Co, has signed an agreement with Shanghai Electric Power Generation Group under which China's top power equipment maker by market value will supply boilers, turbines and generators for the 600-MW Haldia thermal power project in West Bengal.

The deal between CESC – a part of the RP-Sanjiv Goenka Group – and Shanghai Electric is estimated to be worth Rs1,000 crore. The unit is scheduled to be commissioned by mid-2014.

Group chairman Sanjiv Goenka said, "Work has begun in full swing at Haldia with all necessary clearance received. In the first phase, the plant will generate 600 MW." He added that the total investment for the first phase is Rs3,250 crore.

At the same time, the two groups also signed a memorandum for long-term collaboration, particularly in bidding for ultra mega power projects (UMPPs) which the union government is planning in order to help overcome India's chronic shortage of electricity.

Goenka said apart from UMPPs, the memorandum could also lead to a joint venture or cooperation agreement for entering new areas such as wind power. He added that setting up joint manufacturing facilities could also not be ruled out.

The RP-Sanjiv Goenka Group, formed after a division of the industrial empire of the late R P Goenka between his two sons, aims to increase its power generation capacity to 7,000 MW by 2018 from the current 1,250 MW, with a projected outlay of Rs30,000 crore, Goenka said.