BGR-Hitachi power equipment plants to go on stream in 2013

Chennai, Sep 16 (IANS) Chennai-based BGR Energy Systems will become an integrated power equipment manufacturer by 2013 as its two joint venture plants will start functioning, a top company official said here Friday.

The first plant will make steam turbines and generators and the other super-critical boilers.

'By January 2013 both the plants will start supplying equipment,' chairman B.G. Raghupathy said. 'We are investing Rs.4,400 crore in the projects and construction is expected to start next year.'

To become an integrated power equipment maker, BGR Energy Systems last year inducted two firms of the Japanese Hitachi group as joint venture partners in the two subsidiaries.

BGR Energy gave a 26 percent stake in BGR Turbines Company to Hitachi Japan to design, build and commission super-critical steam turbines and generators for coal-fired power plants.

The Rs.4,747 crore Indian company divested a 30 percent stakes in BGR Boilers to Hitachi.

According to Raghupathy, the two plants are coming up near Madurantakam along the East Coast Road, around 80 km from here, and 90 percent of the land has been acquired.

Officials said the orders for long lead machineries have been placed and boilers, turbines and generators will be shipped through Chennai or Ennore port here.

The turbine plant will make its debut supplying to NTPC Ltd. BGR Energy Thursday announced that it is the lowest bidder.

According to A. Swaminathan, director-sales and marketing at BGR Energy, two units of steam turbine and generator would be imported and supplied to NTPC Ltd. The joint venture plant would supply components for the remaining three units.

Raghupathy said: 'We will supply for NTPC's Kudgi Super Thermal Power Project (3x800 MW) in Karnataka and Gajmara Super Thermal Power Project (2x800 MW) in Orissa. Both the projects are near the coast and easy to transport equipment to.'