It has recently come to vision that investment of Rs 450 crore would be made by Areva Transmission & Distribution India in calendar 2009 in order to increase equipment-making capacity at its three new plants as also existing ones. The company may make further investments, if required.

On Friday, it was stated by Rathin Basu, managing director at Areva T&D India that the construction and commissioning of the three greenfield manufacturing sites is going as planned.

He said, "Internal trial runs have begun. We will inaugurate commercial production at the three facilities in the first week of April." In 2010, these sites would reach full capacity.

Earlier, it had been planned by Areva T&D India that they would invest Rs 700 crore in building six new factories at the three greenfield sites at Baroda, Hosur and Padappai.

It should be noted that majority of this amount has already been spent. It was stated by Karim Vissandjee, chief financial officer, Areva T&D, "The additional spending of Rs
450 crore takes into account the change in scope of manufacturing facilities and investments into brownfield expansion."

To fund the expansions, the company plans to take help of internal accruals. It would be supported from its French parent Areva SA and if required, it may take loans. Basu confirmed, "We have registered a threefold increase in net cash flow from operating activities in 2008 compared with those in the previous year."