Anil Ambani-controlled Reliance Infrastructure Ltd is joining hands with Shanghai Electric Power Co, China’s second biggest equipment manufacturer, to build power equipment in India.This will be the first time a domestic power utility is inking a power equipment-manufacturing joint venture with a Chinese company.
Under the JV, a facility with an initial capacity of up to 10,000 mw would be set up. This may be scaled up later. The facility is likely to go on stream by 2010.
The agreement, which is to be signed today, will see an investment of $3 billion. The JV would also offer third-party services, including engineering, procurement and construction work, to power companies. Shanghai Electric will offer technical and design support, operations and maintenance, setting up of power equipment and after-sales service as part of the third-party services.
Both Reliance and Shanghai Electric would hold 50% in the company.It would also cater to orders from abroad, especially from neighbouring countries.
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