Chinese firm to build $2.4B Indian power project

Power Construction Corporation of China will build the second phase of a massive $2.4 bililon coal-fired power complex in southern India.

The project for India's Infrastructure Leasing & Financial Services Limited will include the addition of four generators each of capacity 660 megawatts, the Chinese group said.

Power Construction Corp will be responsible for engineering, procurement and construction. The project is intended to ease the soaring local demand for electricity and will also create more than 10,000 jobs in India.

China has been playing an active role in power project construction overseas, particularly in developing countries, taking advantage of state financing as well as experience and technology acquired through three decades of economic boom.

Many Indian power companies have been ordering equipment from overseas, especially from China, as India's power gear makers have struggled to compete on price. After losing out to Chinese rivals, Indian manufacturers have been lobbying the government to impose duty on equipment imports.

Power Construction Corp, a sprawling enterprise under the direct supervision of China's central government, was created last year through a state-dictated merger of dozens of domestic survey and design institutions, power construction companies and equipment manufacturers.

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