Beijing/New Delhi: Power Construction Corporation of China has signed a $2.4 billion contract to build four generators of 660 mw capacity each in the second phase of a coal-fired power plant in South India.
The deal was signed with India's Infrastructure Leasing and Financial Services Limited (IL&FS) to set up the massive coal fired generators, according to a statement posted on the state-owned company's website.
The deal is an EPC (engineering, procurement and construction) contract, Indian officials here said. This is the second biggest project Chinese companies have obtained in Indian power sector.
Last year, Shanghai electric signed an $8.3 billion contract with Reliance Power to supply power generating equipment.
IL&FS is involved in developing a 3,600 MW imported coal based thermal power project in Tamil Nadu, which is being built in two phases.
The project would consist of a dedicated port and jetty with enabling infrastructure for import of 15-25 million tonnes of coal per annum along with other plants and machinery.
Indian officials said it is a win-win deal as the Chinese involvement in Indian infrastructure is not only proving to be cost effective but also helping timely construction of projects.
Commenting on the development, a power sector expert said, "A lot of Chinese firms are forming joint ventures in India.... India is a preferred destination."
The Indian government plans to spend $1 trillion in the infrastructure sector including power, roads, oil&gas etc. Global players will have a major role to play in the achievement of this target.
Many foreign players -- Shanghai Electric, CLP India, an arm of HongKong based CLP, French firms Alstom and Areva, US companies GE etc are investing in the various verticals of the power sector.
The current installed capacity of the country stands at over 2,00,000 MW and the government may add close to 1,00,000 MW in the current XIIth five year plan period (2012-17). However, the target is yet to be finalised.
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