Thursday, November 17, 2005
BHEL to set up mega power plant in Sudan
Indo-Asian News Service
New Delhi, November 16, 2005
The state-owned Bharat Heavy Electricals Ltd (BHEL) has been selected for a $500 million turnkey power project in Sudan, the second largest Indian investment in the African nation.
The 500-1,000 MW power generation project in White Nile State in central Sudan would be the second largest Indian investment in the country after the Oil and Natural Gas Corp (ONGC), said Sudan's ambassador in New Delhi, Abdalmahmood A Mohammad.
Other than equity participation in three exploration blocks in Sudan, ONGC has completed a 741-km oil products pipeline project in the country.
"The agreement to start the project will be signed by the end of this month or in December," Mohammad told IANS Wednesday on the sidelines of the Third Indo-Arab Conference organised by the Associated Chambers of Commerce and Industry of India (Assocham).
"Technical and financial discussions are on to finalise the turnkey project agreement for power generation and transmission which will help Sudan meet half its power needs," he said.
Sudan's finance minister is expected to arrive here for the signing of the agreement. Its cost is to be shared, with India contributing $350 million and the remaining $150 million borne by Sudan.
Cleared by the Ministry of External Affairs, the project would utilise part of the first half of a $100 million line of credit extended by India during President APJ Abdul Kalam's visit to Sudan earlier this year.
"Apart from the $10 million grant by India, the first tranche of $50 million line of credit has been used up for projects by RITES Ltd, a feasibility study by TCIL to set up a cyber city, solar electrification of 1,000 villages, strengthening a power grid transmission line and setting up a solar power equipment plant," the ambassador said.
"For the remaining $50 million line of credit, various candidates have approached us to undertake projects like setting up a railway line, bridges and seaport, and rehabilitation of industries. Being an agriculture economy, we are also keen to benefit from India's experience in green revolution."
Mohammad, who is the dean of Arab ambassadors in India, called for greater linkages between India and the Arab world in his address.
He highlighted the fact that nearly 15 per cent of India's trade with the Arab world and nearly two thirds of India's energy requirements are met from the region.
"Interaction between India and the Arab world can greatly benefit from Third World option as well as multilateral funding, taking into consideration the membership of both regions in the different international grouping, financial and economic institutions," he said.
While "the Arab world has the capital, India has the opportunities", Mohammad pointed out.
© HT Media Ltd. 2005.