ANGAMALY: Industries Minister Elamaram Kareem will inaugurate the commencement of the joint venture between TELK (Transformers and Electricals Kerala Limited) and NTPC on Tuesday.
The new board of directors, with T Balakrishnan, Principal Secretary to the Government of Kerala, as chairman and S Venkideswaran, a nominee of NTPC, as managing director will assume office. Fisheries Minister S Sarma will be the chief guest.
"The association with NTPC, a Central PSU, will enable TELK which is a State PSU to transform itself into a strong player in the power equipment industry", said S Venkideswaran at a press conference here.
The transformer industry in India has a bright future as investment in the power sector is fast increasing. The joint venture, which is aimed at rejuvenating some of the State PSUs, was conceived by TELK which was almost on the verge of winding up operations due to heavy losses.
Though the joint venture agreement was signed in 2007 it took two years to complete the formalities. The State Government has transferred its 44.6 % stake in TELK to NTPC which will be enhanced to 50:50 later. The joint venture agreement envisages an amount of Rs 188.65 crore for massive expansion projects at TELK in a phased manner.
The first stage of the expansion project, involving upgradation and augmentation, will be completed at a cost of Rs 48.25 crore.