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Czech engineering firm to set up Indian unit

Skoda Plzen is establishing a wholly-owned subsidiary in India -- Skoda Energo -- to execute projects in power engineering, particularly construction of thermal and hydroelectric power plants and substations.

The group will also facilitate a Czech Bank, Ceskosl Ovenska Gbchodni Ranka AS (COB), to set up base in India. "COB has been taking care of the financing needs for all our projects and we intend to make them our financiers for India as well," Skoda Energo director Pavec Kalina said in New Delhi recently

The bank will cooperate with other Indian banks to facilitate project finances, he added.

"The company has so far been participating in Indian activities through its liaison office in the country. But now, with liberalization, and India concentrating on developing its power sector, we intend to make our presence felt here which is not possible without a representative office in the country, Kalina said.

The India divisional will offer participation in complete projects of thermal and hydroelectric power plants and substations. The related activities include submission tender offers, preparations of complete project specifications. Machinery and equipment supplies, plant erection, equipment operational, start, testing, trial run, commissioning and warranty tests, training of the customer's operating and maintenance personnel, after sales service and upgrading projects for obsolete power plant equipment, whether of proprietary design or of other producers.

The objective of Skoda Energo, Kalina said, will be to meet the demands of its customers by the most efficient manner. It consists of five subsidiaries. All of which are expected to be brought to India. The five subsidiaries are Skoda Turbiny, Skoda Elsktricke Stroje (SES), Skoda Etd, Skoda Controls and Skoda Diz.

Skoda Turbiny specialises in power generation equipment and services. The main activities of the company consist of turnkey delivery of power generation plants and delivery of contracted technological equipment for the same.

SES, he said, will concentrate on manufacturing large rotating electric machinery, in particular turbogenerators and hydrogenerators. Skoda Etd manufactures and sells a wide range of electric apparatus. Transformers and weldments for the manufacture of large rotating and stationary electric machinery.

The group, Kalina said, is also concentrating on getting its transportation systems business to India, to start with. The group's subsidiary Iatra has already set up a joint venture with Venus Udyog India limited to manufacture trucks in the country.

Besides, the group is also exploring the feasibility of setting up a base for its minivan manufacturing Arm-Skoda Elcar. The company is oriented at research, development, testing and limited quantity production of minivans.

UNI