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GMR Infra’s arm inks MoU with TNB Remaco to set up JV

03 Apr 2017 Evaluate

GMR Infrastructure’s (GIL) subsidiary – GMR Energy (GEL) has inked a Memorandum of Understanding (MoU) with TNB Repair and Maintenance Sdn Bhd (TNB Remaco) to collaborate and set up an O&M joint venture (JV). TNB, which is the largest power utility player in Malaysia with an integrated presence across the value chain of power generation, transmission and distribution, recently invested $300 million (Rs 2,000 crore) in GMR Energy to take up a 30% 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.

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. Through this JV, GEL and TNB REMACO will extend their technical expertise to the several power plants in India.

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