In addition to this, CPIL also plans to pick up equity stakes in the private sector power plants preferably the liquid fuel projects of the independent power producers (IPPs). Caterpillar has also chalked out plans of getting into debt financing.

Speaking to The Financial Express, managing director, Caterpillar Asia Limited E H Kohutek said that as part of expanding its business activities in India, CPIL will get into project financing-picking up equity stakes besides undertaking turnkey jobs for power projects in India.

The company has identified few viable liquid fuel power projects wherein it will be picking up stake and investments in these projects will be routed through its overseas arm, Caterpillar Power Ventures Corporation (CPVC), USA.

"The company is negotiating with asmany as three IPPs for picking up equity stakes in their liquid fuel fuel and gas based power projects and thereafter plan to do at least four such projects a year", Kohutek added.

CPVC along with Caterpillar Financial Corporation, USA plans to invest around $ 50 million a year in terms of picking up equity in the power projects. Both these companies will together look into debt financing also, Hohutek added.

Company officials said that depending on the way their project financing business grows, Caterpillar may also think of setting up a project financing shop in India.

Caterpillar in association with C K Birla group is manufacturing gensets in the range of 180 kVA to 2000 KVA and the higher range is being imported from Germany.