- GMR Energy Limited and TNB REMACO to setup JV in India for O&M of power plants
- The JV to setup a refurbishment/ maintenance facility for power plants in India
- TNB REMACO will invest in a facility outside Malaysia for the first time
- GMR Energy already has a strategic partnership with Tenaga Nasional Berhad
GMR Energy Limited (GEL), a subsidiary of GMR Infrastructure Ltd. and TNB Repair and Maintenance Sdn Bhd (TNB Remaco) today have inked a memorandum of understanding during an event here to collaborate and set up an O&M joint venture.
TNB Remaco, a Malaysia’s premier specialist in power plant repair and maintenance with a proven track record of over 30 years, is the repair and maintenance arm of Tenaga Nasional Berhad (TNB).
TNB, which is the largest power utility player in Malaysia with an integrated presence across the value chain of power generation, transmission and distribution, recently invested USD 300 mn (Rs 2,000 Cr) in GMR Energy Limited to take up a 30% equity stake in select portfolio of GEL assets on fully diluted basis.
The O&M JV between GMR Energy and TNB Remaco will provide operation and maintenance services, performance improvement services, testing and diagnostic services, repair and refurbishment services for power plants in India. For this purpose, the JV plans to setup a refurbishment/ maintenance facility in India. This will be the first time that TNB Remaco shall be investing in a facility outside of Malaysia.
Commenting on the development, Mr. GM Rao, Group Chairman, GMR Group, said: “India’s substantial and sustained economic growth is placing enormous demand on its energy resources. The demand and supply imbalance in energy sources is pervasive requiring serious efforts by Government of India to augment energy supplies. The key objective behind signing the MoU is to optimise the operations of the Indian power plants in a bid to enhance availability, output, efficiency of power plants along with power plant life. The partnership with TNB Remaco signifies the GMR Group’s commitment towards a holistic improvement of the power plants in India. It also shows that the global investors are reposing faith in the long term growth of the Indian power sector
Mr. GBS Raju, Chairman, GMR Energy added: “We are very happy to have TNB Remaco as our JV partner for O&M in Power plants. This will be the first investment of the Malaysian company in a facility outside Malayasia. This would provide a renewed impetus to our Energy portfolio and strengthen our relationship with our strategic foreign partner Tenaga Nasional Berhad
As per the three-year MOU, GEL and TNB Remaco will identify business opportunities in the high-potential Indian market and provide operation and maintenance services to the power plants. This O&M JV is a logical business extension for GEL to leverage the significant O&M expertise of TNB. Through this JV, GEL and TNB REMACO will extend their technical expertise to the several power plants in India. This is a niche market and with increased focus on cost management by the power plants in the country, there is a vast opportunity. In addition, TNB Remaco’s expertise would also facilitate GEL in improving the performance of its operational assets.
About GMR Infrastructure Limited
GMR Group is a leading global infrastructure conglomerate with interests in Airport, Energy, Transportation and Urban Infrastructure. The group has fifteen power generation projects of which ten are operational and five are under development and construction stages. Besides, it has seven operating road assets and a double rail track line between Mughalsarai-New Bhaupur (Kanpur) of Eastern Dedicated Freight Corridor is under development.
GMR Group developed and operates India's busiest Indira Gandhi International Airport in New Delhi and Rajiv Gandhi International Airport at Hyderabad. It has recently won the concession to develop and operate Goa’s Greenfield Airport at Mopa. GMR Infrastructure in partnership with Megawide Construction Corporation is developing Mactan Cebu International Airport (MCIA) in Philippines. The Group is also developing two Special Investment Regions at Krishnagiri and Kakinada and India's largest Smart Airport City near Hyderabad International Airport.
GMR Group, through its Corporate Social Responsibility arm, GMR Varalakshmi Foundation, carries out community-based development initiatives at 29 locations in India and Nepal in the areas of education; health, hygiene and sanitation; empowerment and livelihoods; and community development.
For further information about GMR Group, visit http://www.gmrgroup.in/index.html
About GMR Energy Limited
GMR Energy Ltd (GEL) is apart of the GMR Group, which is one of the largest diversified Infrastructure Conglomerates in India.
With an operating capacity of over 4,600 MW, it has a balanced fuel mix of coal, gas as well as renewable sources of wind and solar energy. Apart from this, plants of over 2,500 MW generation capacities are under various stages of completion/ development in India and Nepal.GMR Energy recently allotted 30% stake to Tenaga Nasional Berhad, Malaysia (TNB).
About Tenaga Nasional Berhad (TNB)
Incorporated in Malaysia in 1990 as a public company, TNB was listed on the Main Board (now known as the Main Market) of Bursa Malaysia Securities Berhad on 28 May 1992. TNB is the largest electricity utility in Malaysia and one of the largest power companies in Southeast Asia. TNB’s core businesses span the entire value chain of electricity production and supply encompassing Generation, Transmission and Distribution.
While, the Generation Division operates six thermal power stations and three major hydroelectric power generating schemes in addition to supporting the operations and maintenance of three Independent Power Producers (IPPs), the Transmission Division connects power generated by TNB and IPPs throughout Peninsular Malaysia with Distribution’s network as well as directly to large industrial customers via the National Grid. The Distribution Division supplies end users, with a keen focus on delivering a world-class customer experience.
Through its subsidiaries, TNB is also involved in energy-related operations such as the manufacture of transformers, high-voltage switchgears and cables; the provision of professional consultancy services; architectural, civil, electrical engineering works and services, and repair and maintenance.
TNB is a blue chip company listed on the Bursa Malaysia with a market cap of US$15.1bn. In FY’15, TNB generated a turnover of ~US$10.3bn and an EBITDA of ~US$3.3bn.
About TNB Repair and Maintenance Sdn Bhd (TNB Remaco)
TNB Remaco, a wholly-owned subsidiary of TNB, is Malaysia’s premier service provider for power plant O&M, Repair and Maintenance, Testing and Diagnostic and Project Management. It has its own state of the art refurbishment and repair facilities for turbines and motors.
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