Kochi: Steel Industrials Kerala (SILK), a state government public sector company, has entered into a tie-up with a Chinese firm, Hunan Chenzhou Electric International Development Corporation (HCIDC), to set up a unit for manufacturing turbines and other equipment for small hydel projects.
The new joint venture (JV), Sino-Indian Turbine Manufacturing Company (SITM), will have an investment of $2.9 million, according senior government officials. SILK will have a 30-per cent stake in the company and HCIDC the remaining 70 per cent.
The officials say the new company will be the first JV industrial project having Chinese participation in India. ''HCIDC will invest $2 million in the company by way of technology transfer and machinery.''
SILK's contribution is the land and machinery in its unit at Cherthala in Alappuzha district. The Kerala State Electricity Board is currently working on 14 small hydel projects using Chinese technology. These projects are proposed to be allotted to the newly formed SITM. Industries Minister K Kunhalikutty says the expenses on the machinery for these projects will come down because of the savings on import customs duty.
The state will also gain by way of direct and indirect taxes on the turbines and equipment manufactured here. The new JV company will also market its products in South Asian and African countries, in addition to other states in India.