TRONOH Mines Malaysia Bhd sees its new partnership with China’s Shanghai Electric (Group) Corp Ltd (SEC) and India’s Aban Construction Pte Ltd as a unique opportunity to enter the growing power sector in India.
Tronoh unit Zelan Holdings (M) Sdn Bhd had signed a memorandum of understanding with the two parties early this month to form an exclusive partnership to tender for power projects in India on a turnkey basis.
Tronoh chief operating officer Khoo Boo Cheong said the partnership had recently identified three power projects in the country and would participate in the bidding for construction of the 600-750MW power plants with an estimated value of US$600mil (RM2.4bil).
“We have not worked out the percentage of our participation yet because it will depend on the expertise each of the partners will contribute,” Khoo told StarBiz, but said the equipment supplier would naturally have the bigger share in view of the high cost of power generation equipment.
SEC is the largest company in China in the area of power generation equipment design, manufacture and supply. It has a total capital of 4.73 billion yuan (RM2.8bil) and annual turnover of 65 billion yuan (RM32bil).
The Aban group is one of India’s largest independent power producers with annual turnover of over 5 billion rupees (RM600mil).
“The best part about these partnerships is that Tronoh will have the opportunity to work with two of the best players in the field,” Khoo said. The partnership is the second for Zelan in the regional power sector this year after it formed a joint venture with Indonesia’s PT Krazu Nusantara in May.
The two partnerships would put Tronoh in a better position to tap the construction and power sectors in the region, Khoo said.
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