The central government has recently decided to set up Rs. 6000 crore NTPC-BHEL joint venture power equipment manufacturing plant at Manavaram village area in Chittoor district of Andhra Pradesh. The proposed plant is expected to start manufacturing power equipment parts for generating 5,000 mw per annum by 2014-15.

According to Secretary, Heavy Industry Satyanarayana Dash the joint venture project named as the NTPC-BHGEL Power Project Private Limited (NBPPL), the site for the project was considered after a prolonged deliberations as the area is best suited because of its proximity to sea ports, airports, road through-fares and an urban region like Hyderabad in the vicinity. In fact, the government needs to augment the capacity to about 40,000 mw per annum during the 12th 5 year plan period.

He clarified that both the JV partners have so far subscribed Rs. 5 crore each as the paid up equity capital and have also committed to enhance their individual contributions to the JV by Rs. 100 crore. The NBPPL first project will stand on 750 acres of land with more than 250 acres of contiguous stretches. In addition, the JV has been handed four projects from its parent companies including work on a gas based power plant in Tripura, a 100 mw combined cycle project in Assam, a letter of confidence in Muzaffarpur and the awarding of contracts in Singrauli.

The new project would provide direct employment to over 6,000 locals and indirect to about 30,000 across the country, besides paving the way for setting up over 400 ancillary units in the area as this is a major industrial project coming up in the state after the Vizag Steel Plant, claimed state government sources. Former state Chief Minister Y S Rajasekhara Reddy, who actively had lobbied for the project, apart from the Andhra Pradesh many other states including Rajasthan and Maharashtra were also vying for the power equipment manufacturing plant. The state cabinet had recently approved allotting 760 acres for setting up the greenfield unit.