New Delhi  - Japan's Toshiba Corp and India's JSW Group Wednesday said they will form a 250-million-dollar joint venture to manufacture and market steam turbines and generators in India, a news report said.

Under the terms of the agreement, the two companies will establish the joint venture by June with an initial capital of 50 million dollars, JSW said in a filing to the Bombay Stock Exchange, the PTI news agency reported.

The venture will include design, manufacture, marketing and maintenance services of middle to large sized steam turbines and generators ranging from 500 to 1,000 megawatts for super-critical thermal power plants.

The companies were scouting for a site of 400,000 square metres for the main facility and will invest 250 million dollars in plant and manufacturing equipment, the filing said.

The manufacturing operations are scheduled to start in September 2009 and the joint venture aims to establish a production scale of 3,000 MW.

"This investment is a significant step for Toshiba, one that will give us a firm foothold in the rapidly growing Indian market for thermal power generation," Toshiba Power Systems Company Executive Vice President Atsuhiko Izumi was quoted by the PTI as saying.

While Toshiba will hold a 75 per cent stake in the venture, the remaining will be owned by the Indian conglomerate via its two companies, JSW Steel and JSW Energy, holding five and 20 per cent respectively. (dpa)