The Steel Industrials Kerala Ltd (SILK), a state government undertaking, has inked a pact with Hunan Chenzhou Electric International Development Corporation (HCIDC), China, for the manufacture of small hydro-electric turbines and equipments.
A new joint venture company, Sino Indian Turbine Manufacturing Co, has also been formed and it has attracted a total investment of $2.9 million into the state.
A six-member Chinese delegation headed by Tan Xiang Ling, general manager and vice-director, HCIDC, is currently touring the state for finalising the formation of the proposed joint venture unit.
Other members in the delegation include Li Yau Zu, deputy director, Ministry of Water Resources, Changjiang Water Resources Commission; Cai Xian Fang, vice-general manager & vice-factory director, Zhejiang Linhi, Electric Machinery Co Ltd; Hu Xiaobo, programme officer, International Network on Small Hydro Power; Zhang Lian Sheng, chief engineer, Zhejiang Jinlun Electro Mechanic Co Ltd and Li Hong, HCIDC.
As per the MoU signed between the two companies, SILK will have a 30 per cent stake in the new company, with HCIDC holding 70 per cent of the equity.
SILK will have its contribution by way of land and machinery made available at its unit in Cherthala, Kerala.
HCIDC will invest $2 million by way of technology transfer and machinery required for the new venture. The preliminary work will begin soon and the project is expected to be commissioned within a year.
The delegation will be meeting chief minister A K Antony, industries minister P K Kunhalikkutty, electricity minister Kadavoor Sivadasan as well as the principal secretary and secretary-industries during their week-long visit. The delegation will also interact with various scientific bodies and experts this week.
SILK is the only company in the public sector after Bharat Heavy Electricals Ltd (BHEL), which undertakes design, engineering, manufacturing and construction of small hydel projects in the country.
The government is currently considering the commissioning of 14 small hydel projects in different parts of the state.
These projects, on allotment to the newly formed joint venture company in the public sector can save import duty to KSEB and increase tax realisation to the extent of 20-25 per cent by way of direct and indirect taxes for the state.
Sino Indian Turbine Manufacturing Co has its plans to market their products in the South Asian regions and African countries, besides India. China is also expected to buy back certain equipments manufactured by the project.
Sino Indian Turbine Manufacturing Co is the first joint venture company of its kind in the country where Chinese investment and participation by way of technology transfer is envisaged.
The success of the JV is also expected to attract more Chinese investment into the IT and electronics sectors in the state.
Formation of Sino Indian Turbine Manufacturing Co will also help accelerate power generation process through small hydro power projects in the country as Chinese technology is considered to be the most cost-effective.
