Hinduja Energy India Limited will sign the official agreement with STEAG Energy Services (India) Private Limited – the Indian subsidiary of the German company.
As part of an overall deal, STEAG has also acquired a 5 per cent stake in Hinduja National Power Corporation Limited (HNPCL) through its subsidiary STEAG Energy Services GmbH and would have the option to invest in future power projects of the group.
The new JV will operate HNPCL's Visakhapatnam plant and carry out operational requirements for new power projects in the country.
The 1,040 MW coal-based thermal power plant in South India is currently in advanced stages of construction for commissioning in 2013.
The Hinduja Group had announced plans to set up 10,000 MW of power generation capacity over the next seven-eight years. It said in a statement that the new JV would back its plans to become a major power sector player in India.
The group sees power as a key driver of India's economic growth and feels STEAG can be an important technology partner for it.
Founded in 1914, the Hinduja Group has a presence across a number of sectors including financial services, automobile, media and entertainment, infrastructure, oil and gas and power across 35 countries, including India.
STEAG GmbH is the fifth largest electricity producer in Germany and has power plants in Colombia, Turkey and the Philippines.