Month: May 2008

Toshiba Corporation and JSW, one of the India’s well known business groups have agreed to establish a joint venture company to manufacture and market steam turbines and generators for thermal power plants in India.

Under the terms of agreement between the companies, Toshiba and JSW will establish a joint venture in June 2008. The new company will have an initial capitalization of US$ 50 million, 75% held by Toshiba and 25% by JSW Group, to be held by two key group companies. JSW Steel – 5% and JSW Energy – 20%. The companies are now deciding the location of the headquarters and manufacturing facilities and will and will announce the details in due course.

Power Trading Corporation – PTC’s 4QFY08 results at Rs192mn were sharply ahead of estimates (Rs114mn) due to significantly higher than estimated other income. The traded volumes fell by 15.4% yoy to 1.2bn units during the quarter led by lack of surplus power and very low long term volumes of Tala project and Himachal Pradesh Electricity board.

Moreover, the operating margins fell to 0.4% during the quarter led by the lower traded volumes. During the quarter, PTC has acquired an 11% stake in Teesta Urja, a 1,200MW hydel power project in Sikkim. Additionally, the company’s subsidiary PTC Financial Services (PFS) has acquired equity stakes in a power exchange and in wind, bio mass and bio fuel projects in India. These investments have been funded by PTC from the QIP issue of Rs12bn completed in January 2008.