ICICI Ventures eyes stake in BHEL JV

New Delhi, Sept. 4: Two leading private financial institutions — ICICI Ventures and IL&FS — are likely to pick up 50 per cent stake in the NTPC-BHEL joint venture, which was floated in April this year to manufacture power equipment.

"We are meeting IL&FS and ICICI Ventures representatives on September 10. We will see how much they can invest in this joint venture company," said minister of state for power, Mr Jairam Ramesh.

At present, the two Navratnas PSUs have 50 per cent equity each in joint venture NTPC-BHEL Power Projects Pvt Ltd (NBPPL). The new entity will have a capacity of 5,000 MW per annum by 2014-15 at an investment of Rs 6,000 crore.

BHEL’s former director (Engineering), Mr C.P. Singh has been appointed as chairman and managing director of NBPPL.

The objective of setting up this joint venture company is to undertake engineering, procurement and construction (EPC) contract for power plants and manufacture equipments like turbine generators and boilers.

In a communique to the both Navratnas, the Power Ministry has clearly mentioned that the new joint venture would not be government company and the process for bringing in more partners would start immediately.

The ministry made it clear that for achieving enormous managerial, commercial and technological flexibility, there is need of private partners to make it a private company.

Despite being Navratna companies, NTPC and BHEL do not enjoy the managerial, commercial and technological flexibility, it added. — PTI