GMR Energy Ltd (GEL) and TNB Repair and Maintenance Sdn Bhd (TNB Remaco) have inked a MoU to collaborate and set up an O&M joint venture.
TNB Remaco, a specialist in power plant repair and maintenance is the repair and maintenance arm of Tenaga Nasional Berhad (TNB) – the largest power utility player in Malaysia with an integrated presence across the value chain of power generation, transmission and distribution. TNB has recently invested Rs 2,000 crore in GMR Energy to take up a 30 per cent equity stake in select portfolio of GEL assets on fully diluted basis.
The O&M JV between GMR Energy and TNB Remaco will provide operation and maintenance services, performance improvement services, testing and diagnostic services, repair and refurbishment services for power plants in India. For this purpose, the JV plans to setup a refurbishment/ maintenance facility in India. This will be the first time that TNB Remaco shall be investing in a facility outside of Malaysia.
Commenting on the development, GM Rao, Group Chairman, GMR Group, said, “The key objective behind signing the MoU is to optimise the operations of the Indian power plants in a bid to enhance availability, output, efficiency of power plants along with power plant life. The partnership with TNB Remaco signifies the GMR Group’s commitment towards a holistic improvement of the power plants in India. It also shows that the global investors are reposing faith in the long term growth of the Indian power sector.”
As per the three-year MOU, GEL and TNB Remaco will identify business opportunities in the high-potential Indian market and provide operation and maintenance services to the power plants. This O&M JV is a logical business extension for GEL to leverage the significant O&M expertise of TNB. Through this JV, GEL and TNB REMACO will extend their technical expertise to the several power plants in India.