Bhopal, Sep 17 (UNI) An Indo-China joint venture to produce silicon insulators will be set up at Mandideep industrial estate near here.
An agreement for the project has been firmed up between Chinese and Indian promoters, Madhya Pradesh Industries Minister Jayant Mallaiya told newspersons here today.
As the product is mainly being imported by various organisations including Railways, Power Grid Corporation, NTPC, the project would help in saving sizeable foreign exchange.
Silicon insulators, he pointed out, were very light, robust and cost almost the same as porcelain insulators. Besides, silicon insulators are made in one piece for different capacities, while porcelain and glass insulators are formed by joining many components.
The promoters are China's Zhengzhou Xianghe Group Electric Equipment Manufacturing Company with 51 per cent equity and Bhopal-based G K Electricals, which will have 49 per cent equity.
He said the first phase will cost Rs 6.70 crore. The second and third phases to produce windmill, power transformers and composite sub-station will involve investment of Rs 400 crore.
Meanwhile, the Chinese company's 15-member delegation led by company's Vice General Manager Hu Bo called on Chief Minister Shivraj Singh Chouhan and the Industries Minister and apprised them of its plans for investment in the state.
Principal Secretary (Industries) Avni Vaishya, Energy Secretary Sanjay Bandopadhyay and Small-scale Industrial Corporation Managing Director S K Mishra were also present.
It thanked the state government for issuance of letter offering land for the project.
Mr Bo expressed the hope that the production would begin in next six months.