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THIRD INDIAN POWER STATION CONTRACT WON BY ROLLS-ROYCE

 RESTON, Va., Nov. 17 /PRNewswire/ -- Rolls-Royce announced today a third major power station project in India worth 275 million pounds, bringing to 660 million pounds the value of business won in India in two days.
 The latest contract involves a coal-fired power station at Balagarh in West Bengal, which will be a total turnkey contract carried out by Rolls-Royce Power Generation Systems, a unit of Parsons Turbine Generators Ltd, on behalf of CESC Ltd of Calcutta.
 Parsons Turbine Generators will supply two 250MW steam turbine generators for the three-year project on an island in the Hoogley River in West Bengal.
 Yesterday Rolls-Royce announced two contracts worth 385 million pounds signed on board the Royal Yacht Britannia moored at Bombay during the British Week organized by the Indo-British Partnership Initiative.
 Under the two contracts Rolls-Royce Power Generation Systems will build the 110 million pounds Godavari Project, a 200MW gas-fired combined cycle power station at Kakinada in Andhra Pradesh, and Rolls- Royce will participate in a new company, Chandil Power, established to build and operate a new 500MW coal-fired power station, business worth 275 million pounds to Rolls-Royce, at Chandil in Bihar State.
 In addition to the power station contracts, Rolls-Royce and RPG Industries Ltd of India have formed a new joint venture company, RPG RR Power Engineering Ltd, to provide a comprehensive plant life-improvement service and operational support for power plant installed in India.
 Peter Lockton, managing director of Rolls-Royce India Ltd, said of the Balagarh project in Bombay today: "We are delighted to be involved once again with a coal-fired turnkey power station project in India.
 "We have an excellent working relationship with CESC which stretches back more than 60 years, and we are sure this power station will be an outstanding success. This latest contract follows our success in 1992 in winning a 70 million pounds contract to supply two 250MW steam turbine generators for CESC's Budge Budge power station near Calcutta."
 Rolls-Royce Power Generation Systems was also responsible for constructing the 1000MW coal-fired Rihand power station in India which entered service in February 1992.
 The Godavari Project, expected to be one of the first independent power projects carried out in India following the Indian government's recent initiative to encourage private sector involvement in the electricity industry, is due to start generating power in 1995.
 It will be carried out for Spectrum Power Generation Ltd of Hyderabad and will have three gas turbines, three heat recovery steam generators and one steam turbine generator. The station will be able to use either gas or naphtha as a fuel. Rolls-Royce's alliance partner Westinghouse Electric will be supplying the gas turbines for this project.
 Chandil power station will be built by 1996 for Chandil Power, a new company in which Rolls-Royce will be a shareholder along with CESCON, the project management arm of CESC. Rolls-Royce Power Generation Systems will have total turnkey project management responsibility for this contract, and Parsons Turbine Generators will supply two 250MW steam turbine generators.
 The new joint venture with RPG Industries, to be based in Calcutta, combines the international reputation of Rolls-Royce in supplying capital equipment, systems and services for power engineering with the operating and consultancy activities of RPG Industries.
 Richard Maudslay, managing director of the Rolls-Royce Industrial Power Group, said: "There is a vast market for power plant upgrade and refurbishment in India, as well as for routine overhauls. A good proportion of the plant was built by Rolls-Royce Power Engineering companies which gives the joint venture a head start.
 "RPG Industries, through CESC and CESCON, have first class extensive experience in power plant operation and maintenance. The combination of these skills and experience makes for a winning team."
 -0- 11/17/93
 /NOTE TO EDITORS: Rolls-Royce, a global power systems company, operates through its Aerospace and Industrial Power Groups and exports more than 70 percent of its turnover.
 In addition to the contracts signed in India, Rolls-Royce has also won significant aerospace business this week in the United States and United Kingdom.
 United Parcel Service has chosen RB211-535 engines to power 10 additional Boeing 757s to bring to 30 the number of Rolls-Royce powered Boeing 757s on firm order. The approximate firm business to Rolls-Royce exceeds 90 million pounds. And British Midland has ordered Rolls-Royce Tay engines for a new fleet of Fokker 100 and Fokker 70 aircraft, business potentially worth 70 million pounds./
 /CONTACT: Gerry James, head of information services, of Rolls-Royce Industrial Power Group, 091-401-4204 or, fax, 091-401-4167/


CO: Rolls-Royce Industrial Power Group ST: Virginia IN: ARO UTI SU: CON

IH-DC -- DC011 -- 5371 11/17/93 10:25 EST
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Date:Nov 17, 1993
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