$2.9 M Chinese JV to be set up in Kerala

Tuesday, 07 January 2003, 20:30 IST
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A $2.9 million Chinese joint venture to manufacture hydroelectric turbines is to be set up in Kerala.

THIRUVANANTHAPURAM: An MoU to set up the Sino Indian Turbine Manufacturing Company was inked Monday by the state-owned Steel Industrials Limited Kerala (SILK) and the Hunan Chenzhou Electric International Development Corporation (HCIDC). HCIDC is a world leader in the production of hydroelectric turbines and supplies the equipment to close to 40 countries. The Chinese company has agreed to buy all the turbines that are not sold in India, Industries Minister P.K. Kunjalikutty told reporters after the signing ceremony. A preliminary MoU for the joint venture was signed late last year when Kunjalikutty visited China. SILK will contribute 30 percent of the equity with the Chinese company bringing in the rest, Kunjalikutty said. "On account of the JV, the cost of generating one MW of power, which is now around 6 crore ( 60 million) would come down to around 4 crore ( 40 million)", said V.K.Damodaran, who heads a UNIDO-assisted centre that supplies technical know-how to HCIDC. A six-member Chinese delegation is currently touring the state to inspect the facilities at SILK's Shertalai plant where the JV would commence operations. "There is tremendous scope for hydro-power in the state and at any place where there is a waterfall with a three foot gradient," said delegation leader Tan Xiang Ling.
Source: IANS