Mumbai, July 7: Alstom, a French heavy engineering company, will shift part of its global research and development (R&D) activities and hydro-power manufacturing to India.

It will expand operations in the country, making Alstom Projects’ Baroda factory in Gujarat a global hydro-power engineering and manufacturing hub.

Alstom thus joins a growing list of global conglomerates setting up R&D bases in the country. The base is likely to be in Bangalore. Alstom domestic operations are conducted through a 51 per cent-owned unit, Alstom Projects India. “To maintain global leadership, it is necessary that we develop as a major player here,” executive vice-president Philippe Joubert said.

The decision to make India a pivot for its operations comes in the midst of a restructuring within the company that will win it approval from the EU for a €2.5-billion bail-out.

The expansion comes at a time when the domestic power sector is poised for rapid expansion as the new reforms are expected to alter significantly the electricity generation and distribution systems in the country.

Alstom Projects India is embarking on a wide-ranging plan to grow its India operations in the power generation sector where growth opportunities are high in the thermal, nuclear and hydro areas with the advent of second generation power sector reforms.