Doosan Heavy Industries and Construction Co Ltd plans to construct a power equipment manufacturing unit in India. The company will not collaborate with any Indian firm, setting up the facility as its wholly-owned subsidiary. The cost for the project has been estimated to be in the range of Rs 2,000 crore to Rs 4,000 crore. The establishment of such standalone wholly-owned units in India has been made possible by the government policy enabling 100 per cent foreign direct investment (FDI) in India.  Doosan’s decision to enter the Indian markets is largely driven by the growing demand for highquality imported power equipment and the tariff rates that have been imposed by the government on imported equipment. The new manufacturing facility will help Doosan acquire a grip on the domestic markets, while maintaining low production costs. The company was previously awarded a contract to build a coal-fired thermal power plant in Raipur-Chattisgarh. Awarded by GMR, the project has an estimated worth of $1.1 billion. The plant constructed by Doosan will have a capacity of over 1,370 MW and is expected to be operational by 2013. The company will also supply the main assembly and turbine generators for the project. |
