Indian firm Tata power wins the US$1.8 contract to invest in Vietnam's Long Phu 2 thermal power plant
Tata Power Co. Ltd, Indian's largest integrated power company, beat competitors from South Korea and Russia to sign a contract worth US$1.8 billion to invest in a thermal power project in Vietnam's Mekong Delta province of Soc Trang.
According to a June 7 report on Indian news website Live Mint, when completed, the Long Phu 2 thermal power plant will be the largest project that India has ever invested in Vietnam.
"Tata Power has been awarded the Long Phu 2 project by the government of Vietnam based on pre-feasibility studies. The capacity is 1,200 megawatts as per the master plan. Tata Power is pursuing further steps including formalizing a memorandum of understanding," the report quoted the company as saying.
Construction of the plant is expected to start in 2019.
Charan Wadhva, an economist with the Centre for Policy Research in New Delhi, was quoted by Live Mint as saying: "This is a milestone in a way for India."
"The Tata group is India's No. 1 multinational company; they have the capacity and reputation to do such projects. This will help anchor India's Look East policy," he added.
The Look East policy was adopted in the early 1990s by the Indian government in an attempt to develop strong economic linkages with high-growth Southeast Asian economies.
Long Phu 2 is one of three thermal power plants under the Long Phu Power Complex.
The Song Da Corporation has been chosen to be the main investor in the Long Phu 2 project and state-owned Vietnam Oil & Gas Group, PetroVietnam funded Long Phu 1, which has a capacity of 1,200 megawatts, according to a statement on the government's website in May 2010.
Long Phu 1 is scheduled to start commercial operations in 2015.
In August last year, Song Da Corp. requested permission to withdraw from the Long Phu 2 project citing economic difficulties.
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