NEW DELHI: The government is looking at selling half of its holding in NTPC Bhel Power Projects Ltd (NBPPL), the newly formed joint venture of state-run NTPC Ltd and Bharat Heavy Electricals Ltd (Bhel), for manufacturing power generation equipment and undertaking engineering, procurement and construction work.

K Ravi Kumar, chairman and managing director of Bhel, told DNA Money, “We plan to divest 50% equity in the NTPC-Bhel power equipment joint venture at the appropriate time. The (JV) company should have full flexibility of working as a private company, while being promoted by two public sector undertakings.”

“We hope to find a 50% joint venture partner by September,” he added.
The final decision for equity divestment and its execution would be the prerogative of the JV company’s board, which is likely to be selected by the first week of August, Kumar said.

He declined to name any company.

“The first priority of NBPPL will be to make the ‘balance of plant’ equipment,” Jairam Ramesh, minister of state for power, told DNA Money after a meeting with the top management of the two companies on Wednesday. The second priority will be to take up operation and maintenance of the power plants and the third priority will be to take up engineering, procurement and construction work for such plants.”

The company is expected to start bidding for projects in October, and hopes to get its first contract award by January next year, said Ramesh.

Bhel makes the primary power generation equipment, including boilers, turbines and generators. There is, however, an acute shortage in the country for making the rest of the equipment needed to run a power generation plant.