Thermax, which is engaged in energy and environment management, entered into a technical licence agreement with Babcock & Wilcox Power Generation (B&W PGG), USA for utility boilers. The boilers will be used to generate steam in thermal power plants, primarily owned by independent power producers (IPPs).
Through this agreement, which covers a period of 15 years and boilers upto 800 MW in size, Thermax would begin engineering and production of the units at its manufacturing facility at Baroda.
The deal between Thermax and B&W PGG is crucialwhen similar tie-ups have recently taken place between
NTPC and Bharat Forge and L&T and Mitsubishi to meetthe demand from the Indian power sector.
Thermax has already started receiving inquiries from IPPs such as Reliance Energy, Tata Power, Lanco, to mention a few for the supply of boilers. Its managing director S Unnikrishnan and executive vice president Ravinder Advani, told reporters on Tuesday that the company hopes to start supplying boilers from its Baroda facility from June 2010 onwards. Of the Rs 450 crore investment it has proposed for the Baroda manufacturing facility, the company has already invested Rs 200 crore.
Unnikrishnan said the agreement would give Thermax the right to use B&W PGG?s proven technology to make significant impact in the private and public power generation sector where an estimated 80,000 MW of capacity would be added in the next five years.