GMR Energy signs MoU with Malaysian company TNB Remaco

JV will provide operation and maintenance services and other services for power plants in India

GMR Energy Limited (GEL), a subsidiary of GMR Infrastructure Ltd. and TNB Repair and Maintenance Sdn Bhd (TNB Remaco) have inked a memorandum of understanding to collaborate and set up an O&M joint venture. TNB Remaco, a Malaysia’s premier specialist in power plant repair and maintenance is the repair and maintenance arm of Tenaga Nasional Berhad (TNB).

TNB, which is the largest power utility player in Malaysia with an integrated presence across the value chain of power generation, transmission and distribution, recently invested $300 million (Rs 2,000 crore) in GMR Energy Limited to take up a 30 per cent equity stake in select portfolio of GEL assets on fully diluted basis.

The O&M JV between GMR Energy and TNB Remaco will provide operation and maintenance services, performance improvement services, testing and diagnostic services, repair and refurbishment services for power plants in India. For this purpose, the JV plans to setup a refurbishment/ maintenance facility in India. This will be the first time that TNB Remaco shall be investing in a facility outside of Malaysia.

Commenting on the development, G M Rao, group chairman, GMR group, said: “India’s substantial and sustained economic growth is placing enormous demand on its energy resources. The demand and supply imbalance in energy sources is pervasive requiring serious efforts by Government of India to augment energy supplies. The key objective behind signing the MoU is to optimise the operations of the Indian power plants in a bid to enhance availability, output, efficiency of power plants along with power plant life. The partnership with TNB Remaco signifies the GMR Group’s commitment towards a holistic improvement of the power plants in India. It also shows that the global investors are reposing faith in the long term growth of the Indian power sector.”