State-owned power equipment major Bharat Heavy Electricals Ltd will soon have competition from the Rs 7,501-crore Reliance Infrastructure Ltd, part of the Anil Dhirubhai Ambani Group. According to company sources, Reliance Infra will soon set up a $3-billion joint venture with China's Shanghai Electric Corporation Ltd to make power equipment – boilers, generators and turbines – in India. Shanghai Electric is one of the largest electrical and mechanical equipment manufacturing company in China with total revenue of Rs 35,000 crore for the year-ending December 2007.The two companies will sign a framework agreement for long-term strategic cooperation on Monday with Shanghai Electric Power Generation Group. Reliance Infra has already initiated talks with a couple of Chinese banks to fund its $3-billion JV with Shanghai Electric. The banks will help the ADAG company ensure equipment supplier performance guarantees and better finance terms.Besides a JV with the company for making power equipment, Reliance Infra and Shanghai Electric Group Ltd will also enter into four other joint ventures.
