Chennai, July 16 - In order to become a full-fledged power plant equipment manufacturer, engineering and infrastructure firm BGR Energy Systems has approached a Japanese steam turbine manufacturer for a tie-up.

Confirming the development, an official told IANS on the condition of anonymity: 'Discussions are on and we may have to visit Japan and the Japanese may visit India before final contours of the deal is arrived at. Whether it is going to be a joint venture or a technical tie is being discussed.'

He did not identify the Japanese firm.

If the deal is concluded, Rs.1,900-crore Chennai-based BGR Energy believes it will be able offer larger machinery needed for power plants on its own, enabling it to control costs and become competitive while bidding.

In April, the company had announced a technical tie-up with Foster Wheeler North America Corp, a subsidiary of Foster Wheeler's Global Power Group, for manufacture of sub- and super-critical boilers with capacities ranging from 100 MW to 1,000 MW.

According to the official, BGR is looking at three sites near here to house the Rs.500-crore boiler plant.

'We have hired a global consultancy to do a detailed study on the project. The report is expected in two months. Then there will be more clarity on the boiler project.