Allahabad, Dec 12: In a bid to strengthen its image both on the national and international fronts, public sector National Thermal Power Corporation (NTPC) signed a memorandum of understanding with the Swedish conglomerate ABB recently for the formation of a joint venture for its renovation and modernisation programmes to be carried out both within and outside the country.As per the MoU, the modalities for the formation of joint venture company will be completed within the next two months and by February the company will be in a position to execute projects. Furthermore, both NTPC and ABB will be 50:50 partners in the joint venture. Details of the corpus and exact quantum of equity to be invested are still being worked out.
NTPC had started scouting around for a suitable partner in the field of R&M almost a year and a half back to ward off the stiff competition being posed by international companies post-liberalisation.
Sources in NTPC told The Financial Express that bids from internationalcompetitors were invited eight months ago. "We had specific performance standards for the bidders and after conducting a detailed analysis, we had shortlisted six companies."
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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