Bharat Forge Ltd (BFL) has decided to enter into a joint venture with Europe-based Company, Alstom Group. The new alliance will focus on the manufacture of critical components for thermal power plants. According to the chairman and managing director of BFL, Baba Kalyani after entering into the joint venture with Alstom Group, the Indian company will be able to play a crucial role in capital goods sector. Although nothing has been revealed about the proposed joint venture, media reports claimed that the agreement will be singed in New Delhi on November 10, 2008.

 

Reports also claim that the manufacturing plant will be set-up near a port. The plan of installing the plant near a port is taken for the convenience factor as the components might weigh above 1000 tonnes. According to reports, either Gujarat or Visakhapatnam might get the pant. With an investment of Rs 1,000-1,200 crore, the proposed manufacturing plant is likely to take five years to get started. Meanwhile the joint venture project is yet to get nod from government and regulatory bodies.