Hinduja Energy forms JV with STEAG for 10,000MW projects

Hinduja Energy has formed a joint venture with STEAG Energy Services for setting up 10,000 MW power plants. It The projects will require an investment of $12-14 billion during the next eight years.

Besides operating the Visakhapatnam plant of Hinduja National Power Corporation Ltd, the joint venture will carry out operations and maintenance activities of new power projects in India. HNPCL's 1,040 MW thermal coal-based power plant is now in advanced stages of construction, for commissioning in 2013.

STEAG has also acquired a 5 per cent stake in HNPCL through its subsidiary STEAG Energy Services GmbH at an undisclosed premium and will have the option to invest in future power projects developed by the group.

Ashok Hinduja, Chairman, HNPCL, said the group saw the Indian power sector as a key driver for the country's economic development and was committed to growing it. “We are glad that STEAG, with their vast international experience and proven expertise, are partnering us in our first power project. I anticipate an enduring and successful partnership with STEAG, further cemented by the 5 per cent stake in HNPCL,” he added.

“Through the cooperation with our Indian partner, we are expanding our commitment to the international power plant business,” said Joachim Rumstadt, Chairman of the Executive Board at STEAG.

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