Cabinet okays India, China MoU for power gear service centres

By PTI | 17 Oct, 2013, 08.28PM IST

NEW DELHI: The Cabinet today gave an approval for signing an initial agreement with China for setting up power equipment service centres in India that would cater to the electricity generation firms here.
According to sources, the Cabinet approved signing MoU (Memorandum of Understanding) with China for setting up power equipment service centres here.
The preliminary agreement is likely to be signed during Prime Minister Manmohan Singh's visit to China next week.
At present 60,000 MW equipment, for the power plants, have been imported of which 20,000 MW have been commissioned.

"Many (companies) feel that there is a necessity of getting spares and equipment repaired in India," a source added.

Several Indian power project developers, including Lanco InfratechBSE 2.25 %, Adani Power Ltd, CLP India Pvt. Ltd and                                                          JSW Energy LtdBSE 0.00 % have placed orders with Chinese firms for equipment.
Reliance PowerBSE -1.12 % and Shanghai Electric Corporation in 2010 signed a USD 10 billion deal for sourcing equipment for the Indian company's projects to be set up in 10 years.