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China and India recently concluded one of the largest yet most closely guarded energy deals in Asia. Last Monday, officials of Shanghai Electric, one of China’s largest mechanical and electrical equipment manufacturing enterprises signed a more than US$1 billion deal with Reliance Infrastructure, India’s largest power utility enterprise, Shanghai Electrics; Zhu Denian, Vice president Shanghai Electric told 2point6billion. .
The two energy companies signed a framework agreement for long-term cooperation, wherein Shanghai Electric would help Reliance Infrastructure set up manufacturing of power plant equipment such as boilers, turbines and generators (BTG) in India.
“Subject to requisite approvals, both parties will cooperate to set up manufacturing facilities in India for manufacturing BTG packages and or parts thereof. The broad contours of the same will be finalized within six months,” stated a release issued by Reliance Infrastructure. The framework agreement will be valid for five years.
The framework agreement also covers SEC to give Reliance Infra its “most favored customer” status pursuant to which SEC to give priority to Reliance Infra for design, advance technology, engineering, specifications, manufacturing and delivery, quality, price and payment terms.
Reliance Infra will give SEC “the most favored supplier” status for the power plants being developed by Reliance Power, and other projects in India provided that SEC satisfies and fulfills the technical requirements of the relevant project and offers competitive price, the Hindu reported.
