Doosan seals deal to build generators in India

Industry

Published: 26 Dec. 2016, 20:12

Doosan seals deal to build generators in India

Kim Heon-tak, Doosan Heavy Industries & Construction’s engineering, procurement and construction division chief, fourth from left, and Akhilesh Yadav, chief minister of Uttar Pradesh, fifth from left, shake hands on Friday at the Foundation Stone Laying Ceremony for the Jawaharpur thermal plant in Uttar Pradesh, India. [DOOSAN HEAVY INDUSTRIES & CONSTRUCTION]

Doosan Power Systems India (DPSI), an Indian branch of Doosan Heavy Industries & Construction, snatched 2.8 trillion won ($2.34 billion) in bids from the country’s state government thanks to its localization strategy.

According to DPSI on Monday, it will construct four coal-fired power generators, two each for Obra-C Thermal Power Station and Jawaharpur Thermal Power Station, both to be built in a northern state of Uttar Pradesh between 2020 and 2021.

“The aggressive step to localize our corporation and focused marketing on Uttar Pradesh state, where the power supply is unstable, were major contributors to winning this bid,” said Kim Heon-tak, Doosan Heavy’s engineering, procurement and construction division chief.

While the Indian energy market is the world’s second-largest after China, projects from central or state governments are closed to companies without a manufacturing facility in the country, the company said in a statement.

Doosan decided to capture the Indian market by establishing a local corporation, DPSI, in 2011 by acquiring a local company, AE & E Chennai Works, and using its facilities to meet the country’s guidelines. DSPI has since landed about five trillion won in orders during the last five years.

Each newly built generator will produce up to 660 megawatts of energy, adding total 2,640 MW to the country’s most populous state.

All construction will be controlled by the company, from plant designs and materials procurement to construction, as the bid was under an EPC (engineering, procurement and construction) agreement.

“With this construction project as a stepping stone, we will speed up penetration into the fast-growing Indian energy market, where an annual 18 gigawatts of coal-fired power plant orders are expected until 2020,” Kim added.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]