OREANDA-NEWS. May 10, 2012. Toshiba Corporation (Tokyo: 6502) and Toshiba JSW Turbine and Generator Pvt., Ltd. (Toshiba JSW), a Chennai-based Toshiba Group company, today announced that Toshiba Corporation has been awarded a contract for the supply of two units of 660MW super-critical steam turbine and generator island by Meja Urja Nigam Pvt. Ltd, a joint venture of NTPC Limited, India's largest state-owned energy service provider, and Uttar Pradesh Rajya Vidyut Utapatdan Nigam Ltd. (UPRVUNL) following the contract award of Kudgi Super Thermal Power Project, Stage-I (3x800MW) in February this year.

The equipment will be installed in the Meja Thermal Power Plant in Uttar Pradesh State, India. The value of the contract is about USD315 million. The scope of the contract covers engineering, procurement, manufacturing, installation and testing of the steam turbine generator islands.

Setting up a local manufacturing facility and a phased manufacturing program with technology transfers in India was a mandatory requirement for the tender. Toshiba embraced this, and established Toshiba JSW in Chennai in 2008. The company is a 75% Toshiba-owned subsidiary and the very first Toshiba Group turbine and generator manufacturing facility outside of Japan.  Steam turbine and generator for the Meja thermal power plant will be manufactured at Toshiba JSW and at Toshiba's Keihin Product Operations in Japan. Commercial operation of the first unit is scheduled in 48 months from the contract award and the second unit in 54 months.

Rapid economic and industrial growth is driving demand in India for increased capacity with equipment that meets the highest environmental standards. Toshiba Group has responded by establishing a network of companies that provides localized one-stop EPC solutions, from plant conceptualization to commissioning. Toshiba India Private Limited in Gurgoan undertakes overall project management; TPSC India in Hyderabad carries out installation and commissioning; and Toshiba JSW, the jewel in the crown, manufactures steam turbines and generators. Toshiba's technical expertise and its strong commitment to localization assured that Toshiba Group secured the order for the Meja Thermal Power Plant against stiff competition.

The power generation equipment market in India is expected to see demand growth of more than 16,000MW a year for the next decade. Coal-fired thermal power plants will account for over 60 percent of capacity growth, far surpassing other energy sources, and supercritical power plants will account for approximately 60 percent of new thermal plants. The Indian government recognizes supercritical technology as a major tool for increasing generation capacity and efficiency while reducing emissions of greenhouse gases, and is strongly promoting adoption of the technology among India's utility companies. Toshiba Group will seek to support this approach and considers India as a potentially major market for power equipment.

Going forward, in addition to India, Toshiba Group, will look to reinforce its presence by making the best use of Toshiba JSW in markets around the world including Asia and the Middle East, where demand for thermal power plants is strong. Toshiba positions the thermal power equipment business as part of a comprehensive power generation portfolio alongside nuclear power and hydro power, and targets USD 1 billion sales in FY2015 for its thermal power business in India.