Finolex Cables to make upto 500kV cables in India in JV with J- Power Systems Corp. (a joint venture between Hitachi Cable & Sumitomo Electric Industr

Finolex Cables Ltd has announced that the Company on December 13, 2007 has entered into a Joint Venture Agreement with J-Power Systems Corporation (JPS) of Japan to offer complete turnkey solutions in Extra High Voltage (EHV) cable systems in India and abroad. The JV will be equipped with state-of-the-art production facility such as VCV (Vertical Continuous Vulcanising) tower to produce high voltage XLPE (Cross Linked Polyethylene) insulated Power Cables. Since such cables are installed in the trunk lines of high voltage power transmission grids in the urban areas extreme quality and reliability are required.

The JV shall be named "Finolex J-Power Systems Pvt Ltd." The JV is expected to be established in Jan 2008 near Pune, in Maharashtra for manufacture and sale of high voltage power cables upto 500 kV grade. The Joint Venture shall also offer complete services of Turnkey installation and connectorization of the complete circuit alongwith the supply of Power Cables and Accessories (Jointing Kits).

J-Power Systems Corporation is a Japanese Cable manufacturer specialized in High Voltage Power Cables and Systems, established in 2001 as an equally owned joint venture between Hitachi Cable Ltd and Sumitomo Electric Industries Ltd, the global leaders in the field of EHV Cable technology.

On this occasion, Mr. Deepak Chhabria, Managing Director of the Company said, "This is a significant development for Finolex. It is a matter of honour that global leaders in EHV cable business have partnered with us. With this Finolex completes its Electric Cables Product range from the lowest voltage grads of 48 Volts in Auto Cable to the highest voltage of 500,000 Volts in Power Cable segment. Finolex is the only Company in India with this unique distinction".

On the issue of demand for EHV Cables, Mr. Deepak Chhabria elaborated, "The consumption and hence the requirement of power is ever increasing in all the cities. This is leading to a high demand for cables for bulk power transmission. HV and EHV cables are mostly used for carrying power in populated urban areas where overhead transmission is impossible due to non-availability of corridor."

The Planning Commission and the Kohli Committee have pegged investment targets in power generation in the 11th Plan. Investment of around Rs 2,488 billion (Rs 2,48,800 crores) will be needed to create 62,213 MW of new power generation capacity during the 11th Plan (2008-2012). As a corollary, investment in power transmission is pegged at Rs 695 billion (Rs 69,500 crores) in the 11th Plan. Distribution and rural electrification would generate investment of Rs 1,100 billion (Rs 1,10,000 crores) and additional requirement coming from APDP (Accelerated Power Development and Reforms Program) to upgrade the existing network would generate further demand for cables.

In India, urbanization is a continuous process. Existing cities are growing and new cities are coming into existence. Hence there is a greater need to convert the overhead transmission power lines to underground high voltage / extra high voltage power cables for safety reasons. The investments in Power sector and the process of urbanization shall translate into a large demand for HV/EHVpower cables.