KUALA LUMPUR (April 3): Tenaga Nasional Bhd (TNB) today entered into a Memorandum of Understanding (MoU) with its 30%-owned unit GMR Energy Ltd (GEL) to venture into power plant operations and maintenance (O&M) in India through its wholly-owned unit TNB Repair and Maintenance Sdn Bhd (TNB REMACO).

According to TNB’s statement today, it said that under the MoU, its repair and maintenance arm TNB REMACO and GEL will provide power plant O&M, performance improvement, testing and diagnostic services.

“TNB REMACO and GEL will jointly set up a refurbishment and maintenance facility in India,” said TNB, adding that this will be TNB REMACO’s first ever refurbishment and maintenance facility outside Malaysia.

GEL, under the same three-year MoU, will identify business opportunities for the collaboration as well as identify and provide a suitable location for the facility, said TNB.

Prior to the establishment of the facility in India, refurbishments works will be performed by TNB REMACO at its facility in Malaysia, TNB added.

TNB noted that both parties have the option to extend the MoU through mutual written agreement.

"With the current economic dynamism, India will be a bright spot in the global economy. We are taking a long-term view in India and we aim to unleash our respective strengths to allow TNB to create a strong foothold and maximise opportunities inherent in the Indian power industry," said TNB president and chief executive officer (CEO) Datuk Seri Azman Mohd.

“Towards this end, we are also looking to expand our expertise and business reach in the transmission and distribution space in India through GEL," he added.

Shares in TNB closed up four sen or 0.29% at RM13.76 for a market capitalisation of RM77.66 billion.