IL&FS to pick stake in PSU JV

New Delhi, Sept 10: Leading private financial institution IL&FS will pick 50 per cent stake in NTPC-BHEL Power Projects Pvt Ltd and would be the strategic partner in the joint venture company.

"IL&FS would be the strategic partner in the NTPC-BHEL joint venture company and will have 50 per cent stake in the company," said minister of state for power, Mr Jairam Ramesh.

He added that IL&FS will do the financial analysis of the company in four weeks time and would also decide its business plan.

NTPC and BHEL each will hold 25 per cent stake in the joint venture company which was floated in April this year to manufacture power equipment and handle engineering, procurement and construction contracts.

"NTPC and BHEL will have to give one project each from their kitty to the joint venture company to start its operations," he said.

NTPC-BHEL Power Projects Pvt Ltd (NBPPL) will have a capacity of 5,000 MW per annum by 2014-15 at an investment of Rs 6,000 crore.

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

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