Black & Veatch Gets Nod For Arm
The government has granted permission to the US-based equipment and engineering major Black & Veatch to set up a 100 per cent subsidiary, Black & Veatch India.
The US firm would initially invest $5 lakh in their Indian subsidiary.
The unit will be used to cannelise investments in power projects and would also provide design, engineering, construction, procurement and related services to power projects in the country.
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Black & Veatch are the market leaders in the United States with a share of 55 per cent and 32.7 per cent in the areas of engineering and construction.
David Guyot, executive partner and head of the power division, Black and Veatch worldwide, said the company had long-term interests in India and planned to invest over $2 billion in power projects alone.
Apart from executing engineering, procurement and construction (EPC) contracts for power projects, Guyot said Black and Veatch was also interested in directly promoting and setting up power projects in the country.
He added the company was still withholding its decision of directly promoting projects and would do so at a later stage after the Indian market develops further.
The government has also allowed the Indian subsidiary to pay the parent company a lumpsum fee of $5,00,000 net of taxes. Apart from promoting power projects, Black and Veatch India would also be involved in developing other infrastructure sectors.
Black and Veatch is at present involved in executing the EPC contracts for the 1000mw Mangalore power project in Karnataka, the 500mw Krishnapatnam project promoted by BBI Power in Andhra Pradesh and Steel Tubes Indias 350mw combined cycle project in Madhya Pradesh.
The Indian unit will be used to cannelise investments in power projects and would also provide design, engineering, construction, procurement and related services to power projects in the country