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India looks to China for power

By Joe Leahy in Mumbai
March 30, 2009 10:20 IST
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Chinese companies are building $7bn of power plant equipment for customers in India, in a business that is underpinning growing trade between Asia's second and third largest economies.

Chinese producers are processing orders from India for 20,000 megawatts of boilers, turbines and generators, the main equipment in a power station, according to Lloyd's Register, which provides third-party assurance certification services for the power business.

"India and China both need each other for growth. There's huge demand on the Indian side and there's huge supply available on the Chinese side - and that is creating a big opportunity for trade," said Swaminathan Krishnaswamy, vicepresident for India chemicals and power and Sino-India business development at Lloyd's Register.

The main Chinese suppliers include Shanghai Electric, Dongfang Electric and Harbin Electric.

Indian buyers include industrial groups Reliance, Essar, Adani, KSK Industries, JSW Energy and Jindal Steel & Power.

Trade between India and China has grown rapidly. It was forecast to reach $20bn last year from just $1.2bn in 1995 and is targeted to double to $40bn by 2010.

India urgently needs to upgrade its infrastructure as it becomes more prosperous.

Copyright The Financial Times Limited 2009

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Joe Leahy in Mumbai
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