BGR Energy cuts capex for JVs with HitachiAugust 9th, 2012 - 5:56 pm ICT by IANS
Chennai, Aug 9 (IANS) City-based BGR Energy Systems has scaled down capital expenditure for its boiler and turbine joint ventures with Hitachi by Rs.900 crore to Rs.3,500 crore to reschedule some segments of the total project, said a senior company official.
“There will be no impact on the production capacity of the two joint ventures to make boilers and turbines. The capex reduction has been done by rescheduling some portions of the overall project,” the official told IANS, preferring anonymity.
The revised project cost for boiler venture would be Rs.1,200 crore and that of the turbine project would be Rs.2,300 crore.
Both the projects will have a debt-equity ratio of 70:30.
To become an integrated power equipment maker, BGR Energy in 2010 inducted two companies of the Japanese Hitachi group as joint venture partners in two subsidiaries.
BGR Energy parted with 26 percent stakes in BGR Turbines Company to Hitachi Japan to design, manufacture, install and commission of steam turbines and generators for coal-fired power plants.
Similarly, BGR Energy offloaded 30 percent stake in BGR Boilers in favour of Hitachi’s German subsidiary Hitachi Power Europe GmbH to make steam boilers.
Both the joint venture companies will have a capacity to make five units per annum of 660 MW, 800 MW and 1000 MW.
The engineering, procurement and construction (EPC) company has invested Rs.95 crore as equity in the boiler joint venture and Rs.145 crore in the turbine venture.
According to the official, another Rs.250 crore would be invested in the proposed ventures.
“The two projects are expected to go on stream sometime mid-2013,” he said.
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