Companies

Hinduja Energy in JV with STEAG

Hinduja Energy India Ltd has announced a joint venture with German energy major STEAG's subsidiary STEAG Energy Services (India) Pvt Ltd for setting up 10,000 MW power plants with an investment of $12-14 billion during the next eight years.

Besides operating the Visakhapatnam plant of Hinduja National Power Corporation Ltd (HNPCL), the joint venture will carry out operations and maintenance activities of new power projects in India. HNPCL's 1,040 MW thermal coal-based power plant is now in advanced stages of construction, for commissioning in 2013. The group has announced its ambitious investment plans to set up 10,000 MW of generation assets over the next 7-8 years with an expected investment of around $12-14 billion.

STEAG has also acquired a 5 per cent stake in HNPCL through its subsidiary STEAG Energy Services GmbH at an undisclosed premium and will have the option to invest in future power projects developed by the group.

Ashok Hinduja, Chairman, HNPCL, said the group saw the Indian power sector as a key driver for the country's economic development and was committed to growing it. “We are glad that STEAG, with their vast international experience and proven expertise, are partnering us in our first power project. I anticipate an enduring and successful partnership with STEAG, further cemented by the 5 per cent stake in HNPCL,” he added.

“Through the cooperation with our Indian partner, we are expanding our commitment to the international power plant business,” said Joachim Rumstadt, Chairman of the Executive Board at STEAG.

STEAG will be an important technology partner for the Hinduja Group and can be a preferred partner in new power projects of the group on the anvil. In preparation, the group has already built a strong core team under the leadership of former BHEL chairman A. K. Puri. “The technical expertise and experience of STEAG and their coming on board well ahead of the commissioning will greatly benefit the operations of the project,” Mr. Puri, who is the managing director of the group, said.

“The joint venture for O&M will have a major role ahead, given the projected double digit growth in aggregate power generation in the country,” he added.

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Printable version | Apr 18, 2021 11:19:44 AM | https://www.thehindu.com/business/companies/hinduja-energy-in-jv-with-steag/article3258877.ece

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