Out-Law News

Chinese company in $2.4bn Indian power plant deal


A Chinese company has signed a $2.4 billion contract to build part of a large power station in India, according to press reports. Power Construction Corporation will build the second phase of the Southern Indian facility, reports said .

Reuters reported that the plant was being built for Infrastructure Leasing & Financial Services Limited (IL&FS) and that the project involved the installation of four generators. It reported the company as saying that the project Power Construction Corporation would be responsible for engineering, procuring and constructing the project.

The Corporation owned by the Chinese state. The company said that the Corporation was "formed by merging and restructuring Sinohydro Corporation, HydroChina Corporation and 14 provincial (local) survey & design institutions, power construction companies and equipment manufactures under State Grid and China Southern Power Grid".

Reuters reports that the Corporation is the result of "a state-dictated merger" of dozens of companies. 

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