Japanese eye power plants
01 MAY 2001
A consortium of Mitsui & Company and Ishikawajima-Harima Heavy Industries Company is in the final stages of negotiating a contract to construct six 660MW coal-fuelled electric power plants, the largest in India, sources at the two firms said.
The order, worth 500-600 billion yen ($4.1-4.9 billion), will be placed by a joint venture between Reliance Industries Limited, India's chemical firm, and US energy company Mirant Corp.
The joint venture plans to locate the facilities in Orissa, a mid-eastern province in India, aiming to supply about 5 per cent of the country's total demand. The Japanese consortium will build the plants and deliver them to the joint venture.
The Indian economy has continued to show more than 5 per cent annual growth since fiscal 1992, led by robust exports of software and other information-technology-related products/services.
However, the country's power supply has been unable to keep up with the 20 per cent increase in domestic power demand over the past five years. During the peak season, power demand exceeds supply by over 10 per cent.
Eyeing the chronic power shortage in India, Mitsui already joined in January a project to improve a depot for imported liquefied natural gas, an energy source seen as a promising alternative to coal. The major trading house is also seeking to win an order to construct an LNG facility in Qatar, which will serve as an export base for India.
- Japanese eye power plants
- Singapore subways and roads get $1.6bn boost
- Decision due on Bangalore airport
