HA NOI (VNS)— India's Tata Power Company has won a US$1.8 billion contract to build coal-fired thermal power plants in southern Viet Nam, said Tata representative Indronil Sengupta.
The Indian firm will pursue feasibility studies for the Long Phu 2 Power Project in the southern province of Soc Trang and develop power plants under the Build Operation and Transfer scheme.
With a capacity of 1,200MW, Long Phu 2 will be one of three plants at the 4,400 MW Long Phu thermo-electricity centre, which is planned to be completed by 2025.
The Long Phu 1 power plant was built by PetroVietnam and is scheduled to start commercial operations in 2015.
Sengupta said the project was the biggest ever investment by an India enterprise in Viet Nam. He said they were following all necessary procedures to start work on the plant in 2019.
The project also aims to help meet increasing demand for power supplies in Viet Nam, and counter the country's growing reliance on importing electricity from China.
According to MoIT's Power Master Plan 7, plants across the country planned to produce 330 billion kWh of electricity by 2020.
At the same time, the Viet Nam National Coal - Mineral Industries Group (Vinacomin) has suggested thermal plants import coal from Indonesia and Australia to ensure a more stable supply for the country's growing thermal power production sector.
Sengupta said Tata owns the biggest coal mines in Indonesia, including one of the largest export coal mines in the world, providing an advantage for the Indian firm in their work in Viet Nam.
Tata Power is India's largest integrated power company with a significant international presence. The company has an installed generation capacity of 6099 MW in India. Starting with the first ever hydro plant in Mumbai, Tata is now working professionally in thermal, hydro, solar and wind power in many countries.
According to the website of India's external affairs ministry, "Viet Nam continues to be an attractive investment destination for Indian companies."
As of December 2011, India has 62 investment projects with total registered capital of $234 million. If investments by Indian companies from third countries are included as well, India has 86 projects with total investment capital of $868 million. —VNS