Indian firm invests US$1.8 billion in Long Phu thermal power plant
(VOV) -India’s Tata Power Co. Ltd has won a US$1.8 billion contract to develop the thermal power plant Long Phu 2 in the Mekong Delta province of Soc Trang.
The Indian firm beat out businesses from the Republic of Korea and Russia to win the 1,200 MW plant’s construction contract.
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The Tata group, India’s leading multinational company, is anticipated to help anchor India’s Look East policy by developing resilient economic links with Southeast Asia’s high growth economies.
“This is a milestone in a way for India,” said Charan Wadhva, an economist with the Centre for Policy Research in New Delhi. “Vietnam is one of the region’s dynamic countries and is considered a major growth area.”
The construction of the plant is expected to start in 2019. The Tata group will need to complete financial closure procedures and draw up a power purchase agreement.
In a letter addressed to Indian Ambassador to Vietnam Ranjit Rae, Tata Power Executive Director S. Ramakrishnan thanked the Indian envoy for the support that enabled the company to win the contract so quickly.
Tata Power’s investment in the Long Phu 2 plant shows its positive assessment of Vietnam’s business environment, despite the US$5 billion integrated steel project currently deadlocked in the central province of Ha Tinh.