BGR Energy, Hitachi partners for Rs4,400 crore power equipment units
07 August 2010
Turnkey engineering contracting company BGR Energy Systems Limited (BGR) yesterday signed two joint venture agreements with Japan's Hitachi Limited and its German subsidiary Hitachi Power Europe GmbH for setting up boiler and turbine manufacturing facilities in Tamil Nadu at an estimated cost of approximately Rs4,400 crore ($956 million).
The joint venture BGR Turbines Company (P) Limited, in which BGR will hold 76-per cent stake and Japan's Hitachi with the remaining 26 per cent, will design and manufacture supercritical steam turbines and generators for power plants.
Another 70:30 JV BGR Boilers (P) Limited in which Hitachi Power Europe will have 30-per cent stake will manufacture boilers.
Chennai-based BGR's business includes supply of systems and equipment and turnkey engineering project contracting for the power, and oil and gas industries.
BGR is the country's largest executer of balance of plant (BOP) contracts-contracts that supply all plant excluding boiler, turbine and generator-for power generation projects.
It is also a major engineering, procurement and construction (EPC) contractor covering design, engineering and supply of all equipment tailored to meet the customer requirement and also civil works.