Mumbai, Sep 18: Electrical equipement manufacturer Indo Asian Fusegear is planning to enter the power distribution business.
In a communication to bourses, the company said it would set up a new company -- Indo Asian Power Distribution and Infrastructure Limited (IAPDIL) -- for the purpose.
The new company will be set up with an initial investment of Rs 25 crore, which will be made through internal accurals of the company.
This apart, Fusegear is in talks with state electricity boards, corporations and utilities for taking up distribution network on franchise basis.
In the initial stage, the company is planning to work on projects in states like Uttarakhand, Uttar Pradesh, Rajasthan, Haryana, Punjab and Madhya Pradesh.
''With the government earmarking Rs 35,000 crore for reforms in the power sector, there is huge untapped potential in distribution business. Our foray into the power distribution business is a logical extension of our electrical equipment business and will further enhance our diverse offering of products and services,'' said company CMD V P Mahendru.
The company will leverage its existing relations with state distribution companies and will introduce high voltage system in order to enhance the operations, which will be made through own investment, he added.