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Chinese firm wins massive Indian order for electricity generators

A Chinese company, Shanghai Electric Co Ltd, has secured a $10bn contract to supply coal-fired generators to India’s Reliance Power Ltd, in a deal financed by Chinese banks, business press reports said. 

Shanghai Electric is China’s biggest power-equipment maker by market value, and Reliance Power’s order may be the world’s largest for generators, Bloomberg reported.

Shanghai Electric will supply a total of 30,000 megawatts of generation equipment over the next three years, equivalent to about 18 percent of India’s current installed capacity.

Moreover, to support the deal, Reliance Power signed a $12 billion financing agreement with Export-Import Bank of China and other Chinese commercial banks, the Financial Times reported.

“This is not just about selling equipment,” the FT quoted Mr. Anil Ambani, the Indian billionaire and chairman of Reliance ADA, as saying. He described the deal as a strategic partnership.