Nagarjuna lining up JV to make auxiliary power equipment (The Economic Times 27th Feb 2008)In order to meet the growing demand for auxiliary equipment used in power plants, Hyderabad-based infrastructure company Nagarjuna Construction Co. Ltd (NCC) is planning to enter the segment with an overseas partner.
Equipment other than boilers, turbines and generators used in power plants fall under the auxiliary equipment category. Such equipment, including coal-handling plants, cooling towers, chimneys, air compressors and ash-handling plants, are also called balance of plant (BoP) equipment.
There has been a recent spurt in demand for BoP equipment, with the government aiming to add around 78,000MW of power capacity in the next five years at an investment of Rs5.75 trillion) to the country’s current installed capacity of 141,000MW.
The core critical equipment for power projects are being supplied by players such as General Electric Co., Alstom and Bharat Heavy Electricals Ltd, while there are only a handful of players in the BoP segment that include Larsen and Toubro Ltd, Punj Lloyd Ltd, Techpro Systems and BGR Energy Systems Ltd.
In fact, to address the issue of shortage of power plant equipment, the country’s biggest power producer, NTPC Ltd, recently announced a decision to enter equipment manufacturing through a joint venture with Bharat Forge Ltd. The venture would produce large turbines and generators as also auxiliary equipment.
NTPC, which currently has an installed capacity of 27,904MW and accounts for one-third of the country’s power generation, is planning to take its total capacity to more than 50,000MW over the next five years.
“We want to address the supply shortages of BoP equipment through EPC (engineering, procurement and construction) route and execute civil, mechanical and electrical works excluding the critical equipment for power projects,” said Y.D. Murthy, senior vice-president of finance at the Rs2,871 crore NCC. More
Equipment other than boilers, turbines and generators used in power plants fall under the auxiliary equipment category. Such equipment, including coal-handling plants, cooling towers, chimneys, air compressors and ash-handling plants, are also called balance of plant (BoP) equipment.
There has been a recent spurt in demand for BoP equipment, with the government aiming to add around 78,000MW of power capacity in the next five years at an investment of Rs5.75 trillion) to the country’s current installed capacity of 141,000MW.
The core critical equipment for power projects are being supplied by players such as General Electric Co., Alstom and Bharat Heavy Electricals Ltd, while there are only a handful of players in the BoP segment that include Larsen and Toubro Ltd, Punj Lloyd Ltd, Techpro Systems and BGR Energy Systems Ltd.
In fact, to address the issue of shortage of power plant equipment, the country’s biggest power producer, NTPC Ltd, recently announced a decision to enter equipment manufacturing through a joint venture with Bharat Forge Ltd. The venture would produce large turbines and generators as also auxiliary equipment.
NTPC, which currently has an installed capacity of 27,904MW and accounts for one-third of the country’s power generation, is planning to take its total capacity to more than 50,000MW over the next five years.
“We want to address the supply shortages of BoP equipment through EPC (engineering, procurement and construction) route and execute civil, mechanical and electrical works excluding the critical equipment for power projects,” said Y.D. Murthy, senior vice-president of finance at the Rs2,871 crore NCC. More
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