New Delhi, Sep 18 (UNI) Indo Asian Fusegear Ltd (IAFL) today said it is foraying into power distribution business and is setting up a new company named Indo-Asian Power Distribution and Infrastructure Ltd (IAPDIL) with an investment of Rs 25 crore.
''Our foraying into power distribution business is a logical extension of our electrical equipments business and will further enhance our diverse offering of products and services,'' company's CMD V P Mahendru said.
He said the company is in dialogue with the state electricity boards, corporations and utilities for taking up distribution network on franchise basis.
The initial investment will be made through internal accruals of Indo-Asian Fusegear Ltd.
''With government pushing for reforms in the power sectors and more than Rs 35,000 crore being earmarked for the same, there is huge untapped potential in distribution business,'' Mr Mahendru said.
Initially, the company is planning to work on projects in north India including Uttrakhand, UP, Rajasthan, Haryana, Punjab and MP.
The new company will have a consultancy and construction wing to carry out survey and take up construction work on turn key basis respectively. The company will initially have a workforce of over 100 engineers.
IAPDIL as per the agreement will share the profits with discom, in the process Discom saves on operate and manage cost.