GE exits thermal power biz, Indian subsidiary to continue operations

GE Power India has said in a filing that it intends to continue pursuing business opportunities in this segment.

“GEPIL would like to clarify that while GEPIL’s promoter, General Electric Company (‘GE’), has announced its intention to pursue an exit from the new build coal power market globally, GE has acknowledged to GEPIL that there continues to remain a demand for FGD systems in India. GEPIL intends to continue pursuing business opportunities in this segment”, it said.

In GEPIL’s view, the total FGD market (including captive power plant) in India is 225 GW, out of which 82 GW (Rs 33,000 cr) has been already been ordered till date by majorly central public sector utilities with a few state utilities and IPP orders.

GEPIL has till date been awarded 10 FGD projects amounting to ~ 13 GW (representing approximately 15% market share), which are now in various stages of execution. The balance potential market for FGD in India which remains to be ordered in the next 3 to 5 years is estimated to be around 143 GW.

Out of this balance, for around 66 GW (Rs 29,000 crores) consisting of potential IPP and captive power plant customers, GEPIL has the capability to pursue these opportunities independently, on the basis of its existing technology licence agreement for FGD with GE and its own execution capabilities, without any further support from GE. GEPIL has been granted a licence to use GE’s FGD technology in India, and GE has confirmed to GEPIL this licence continues to remain available to GEPIL.