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24th April 2012

Bharat Forge Ltd.’s power equipment joint-venture with Alstom bags Rs. 1,570 crore order from NTPC Ltd.

The joint-venture between Bharat Forge Ltd. and Alstom , namely, ALSTOM Bharat Forge Power Ltd. (ABFPL), has bagged a Rs. 1,570 crore (~ €250 mn) order from NTPC Ltd. for the engineering, manufacturing, supply, erection and commissioning of 2x660MW supercritical steam ‘turbine generator islands’ (TG Islands) for the power producer’s upcoming project in Solapur in Maharashtra.

Last year, ABFPL had emerged as the lowest bidder in NTPC's bulk tender for supply of 11x660 MW super critical TG Islands. This tender was the largest-ever power equipment procurement initiative in the country. As part of this bulk tender, besides this award for Solapur project, as per the tender conditions, ABFPL is expecting to shortly get an additional order for three units for the Nabinagar Project from Nabinagar Power Generating Co. Pvt Ltd (NPGCPL), a JV between NTPC and Bihar State Electricity Board (BSEB). An LoI for this project is already with ABFPL.

Supercritical plants use steam with very high temperatures and pressure, resulting in a much higher efficiency than conventional coal-fired plants. This results in lesser consumption of coal and lower emissions per unit of power produced.

ABFPL’s state-of-art manufacturing facility with an annual capacity of 5,000MW is expected to be commissioned at Mundra in Gujarat by 2013. Once completed, this largest integrated manufacturing facility for power equipment in the private sector will play a crucial role in the expansion of generation capacity in India . This will address the rising electricity demand for India’s rapidly growing economy and will also demonstrate the partners’ resolve to make India a global manufacturing hub for technologically advanced power equipment.

“As part of its breakout growth strategy, Bharat Forge is committed to strengthen India’s rapidly growing economy by manufacturing advanced, technology - driven capital goods and ushering in a paradigm change in building sustainable infrastructure to meet aspirations of its 1.2 billion people. Bharat Forge’s world - class manufacturing capabilities and Alstom’s globally - renowned technology prowess have been synthesised in this venture to make India an inter national manufacturing hub for power equipment” said Mr. Baba Kalyani, Chairman of Kalyani Group and ABFPL.

About Bharat Forge

Bharat Forge Limited (BFL) is the flagship company of the USD 2.5 billion Kalyani Group and a global provider of high performance, innovative, safety & critical components and solutions to various industrial sectors including Automotive, Oil & Gas, Aerospace and Rail & Marine. BFL today has the largest repository of metallurgical knowledge in the region and offers complete end to end capability from concept to testing and validation to marquee global OEM’s. At the cusp of a breakout growth & transformation into an engineering conglomerate through its aggressive foray in capital goods and infrastructure sectors, BFL is committed to proactively expedite India’s transformation into a global economic powerhouse.

About Alstom

Alstom is a global leader in the world of power generation, power transmission and rail infrastructure and sets the benchmark for innovative and environmentally friendly technologies. Alstom builds the fastest train and the highest capacity automated metro in the world, provides turnkey integrated power plant solutions and associated services for a wide variety of energy sources, including hydro, nuclear, gas, coal and wind, and it offers a wide range of solutions for power transmission, with a focus on smart grids. The Group employs 92,000 people in around 100 countries, and had sales of €20.9 billion in 2010/11.