VA Tech has received permission from India's Foreign Investment Promotion Board to become sole owner of Bhopal-based C G Elin, which will now be renamed Vatech Hydro (Bhopal).

The change of ownership arose when India-based Crompton Greave, which was joint owner of C G Elin, decided to dispose of its stake in the company back in December.

The decision was part of a wider restructuring which saw Crompton Greaves also dispose of a 49% share in C G Powerware, which went to US partner Powerware International, as well as C G CorEl Logic, C G CorEl Programmable, and its C G Glass business. In all, Crompton Greaves is pulling out of 17 joint venture companies.

The agreement with VATech was signed on 18 January and received clearance from the FIPB at the end of the month.

With its main manufacturing facility in Bhopal, VATech supplies components for medium and large hydro projects, including turbogenerators. Competition in the Indian industry is fierce, as there are several domestic government-owned companies. VATech is said to be planning to invest in the plant and improve efficiencies, with the aim of competing not just in India but also in African and Chinese markets.