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Indian companies get manufacturing licences in Ethiopia

EM NEWS BUREAU ,  Monday, May 09, 2011, 17:03 Hrs  [IST]

At least two companies promoted by Indians have got licences to manufacture transformers in Ethiopia, it is learnt. However, the firstever transformer manufacturing company to be set up in the African nation would be Addis Transformer & Switchgears Plc, a joint venture between local company Bridgetech Plc and Federal Transformer LLC, a subsidiary of UAE-based Al- Nasser Industrial Enterprises.

The two Indian entities to have received licences include Mataji Power & Transmission Plc and a venture promoted by Chitt Ranjan Singh Bhatti. In all, five companies have been granted licences to manufacture transformers and other equipment in Ethiopia.

Addis Transformer expects to start production in September this year from its greenfield factory in the Tatek Industrial Zone of Burava Town in the Oromia regional state.

Transformers are poised to play an important role in the Ethiopian government's ongoing plan to increase the output of the electricity from 2,000 mw to 8,000 mw in five years, according to the government's long-term vision. It plans to increase electricity coverage from 41 per cent to 75 per cent, increase the length of distribution lines from 126,038 km to 258,000 km, and reduce power wastage from 11.5 per cent to below 6 per cent.

Apart from Ethiopia, Kenya is also mulling setting up local manufacturing facilities for transformers. Bharat Heavy Electricals has expressed interest in setting up a greenfield transformer unit with a Kenyan partner.
 
                 
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