Chinese power equipment manufacturer Shanghai Electric Group Company signed an agreement with RP-Sanjiv Goenka Group here on Wednesday for supplying boilers, turbines and generators for the 600 MW Haldia thermal power project at an estimated cost of Rs.1,000 crore. Haldia Energy, a wholly-owned subsidiary of CESC, signed the contract.

Group Chairman Sanjiv Goenka said this apart, CESC and Shanghai Electric Group signed a contract for strategic long-time cooperation under which both parties would collaborate on setting up of coal-based power plants in India. “This could lead to a joint venture or a cooperation for setting up an ultra mega power project or entering new areas such as wind power,” Mr. Goenka said. He told this correspondent that setting up a manufacturing unit could also not be ruled out.

The newly carved out group (following separation of entities between the two sons of R. P. Goenka) has ambitions of increasing its capacity to 7,000 MW from 1,250 MW by 2018 at a cost of Rs.30,000 crore. He said the Haldia unit was scheduled to be commissioned by mid-2014.

Talking to reporters after signing the agreement Shanghai Electric Vice-President Zhu Denion said the first step would be to set up an Indian subsidiary.

The company was scouting for partners for setting up a manufacturing unit for which the process was on. The company now has an office in Gurgaon and at present has contracts for supplying power equipment for a capacity of 22,000 MW. It entered the country 14 years ago through a supply contact with Balco, he said.

More In: Business | Companies