HA NOI (Biz Hub)– India’s Tata Power Company has won a US$1.8 billion contract to build coal-fired thermal power plants in south Viet Nam, said a Tata representative in Viet Nam.
Under the contract Tata Power struck with Viet Nam’s Ministry of Industry and Trade (MoIT), the Indian firm will pursue feasibility studies for the Long Phu 2 Power Project in the southern province of Soc Trang and develop power plants under the Build Operation and Transfer scheme.
With a capacity of 1,200MW, Long Phu 2 will be one of three plants at the 4,400 MW Long Phu thermo-electricity centre, which is planned to be completed by 2025.
The Long Phu 1 power plant was built by PetroVietnam and is scheduled to start commercial operations in 2015.
This Tata Power project was the biggest ever investment by an India enterprise in Viet Nam. Tata Power also confirmed that they were following all necessary procedures to expedite the project, working closely with Ministry of Industry & Trade (MOIT). It is learnt that as per the proposal submitted by Tata Power, they have drawn up plans to start the plant in 2019.
The project also aims to help meet increasing demand for power supplies in Viet Nam, and counter the country’s growing reliance on importing electricity from China.
According to the MoIT’s Power Master Plan 7, plants across the country planned to produce 330 billion kWh of electricity by 2020, including 156 billion kWh from coal thermal plants. At the same time, the Vietnam National Coal – Mineral Industries Group (Vinacomin) has suggested thermal plants import coal from Indonesia and Australia to ensure a more stable supply for the country’s growing thermal power production sector.
Tata Power is a stakeholder in one of the biggest coal mines in Indonesia, providing an advantage for the Indian firm to secure their coal supply for Viet Nam.
According to the website of India’s external affairs ministry, “Viet Nam continues to be an attractive investment destination for Indian companies.”
As of December 2011, India has 62 investment projects with total registered capital of $234 million. If investments by Indian companies from third countries are included as well, India has 86 projects with total investment capital of $868 million. —VNS
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