GMR Energy Limited (GEL), a subsidiary of GMR Infrastructure Ltd, and TNB Repair and Maintenance SdnBhd (TNB Remaco) has recently inked a memorandum of understanding to collaborate and set up an O&M joint venture. TNB Remaco, a Malaysia’s premier specialist in power plant repair and maintenance with a proven track record of over 30 years, is the repair and maintenance arm of Tenaga Nasional Berhad (TNB).
TNB, which is the largest power utility player in Malaysia with an integrated presence across the value chain of power generation, transmission and distribution, recently invested USD 300M (Rs 2,000 Cr) in GMR Energy Limited to take up a 30% equity stake in select portfolio of GEL assets on fully diluted basis.
The O&M JV between GMR Energy and TNB Remaco will provide operation and maintenance services, performance improvement services, testing and diagnostic services, repair and refurbishment services for power plants in India. For this purpose, the JV plans to setup a refurbishment/ maintenance facility in India. This will be the first time that TNB Remaco shall be investing in a facility outside of Malaysia.
As per the three-year MOU, GEL and TNB Remaco will identify business opportunities in the high-potential Indian market and provide operation and maintenance services to the power plants. Through this JV, GEL and TNB REMACO will extend their technical expertise to the several power plants in India.