MUMBAI: Power solutions provider Thermax Ltd today said it has entered into an agreement with the US-based Babcock & Wilcox Power Generation Group (B&W PGG) to set up a joint venture company in India for manufacturing supercritical boilers.

Thermax will own 51% stake in the JV, whereas the remaining 49% would be held by the US partner, the Indian company said in a statement to the Bombay Stock Exchange.

B&W PGG is a global power generation technology firm.

The joint venture will engineer, manufacture and supply supercritical boilers for the Indian power sector, the company said, adding that it will also make sub-critical boilers over 300 mw in size. The supercritical boilers will be manufactured in a new facility that is being planned, it said.

"We are proud to offer the services of this JV to support the government's initiatives to improve the power scenario of the country," Thermax MD & CEO MS Unnikrishnan said.

Shares of Thermax jumped 2.27% and were quoting at Rs 670 in the afternoon trade on the BSE.