Mitsubishi Heavy Industries (MHI) will be establishing a new firm Mitsubishi Power Systems India (MPS India) that will look after the company's power systems business in India.

MPS India will be MHI' fourth regional headquarter, after the US, Europe and Southeast Asia. Through this arm, MHI aims to get a bigger foothold in the Indian market for gas turbine combined cycle plants. MPS India will initially be capitalised at around $1 million (approx Rs 4.9 crore), which could go up to $10 million (approx Rs 49 crore) by the year 2013, when the company expects to have full-scale EPC capabilities. MPS India will be established effectively from 1 November 2011 and operations at the new regional base are also slated to get underway on the same date. MPS India is being created through separation of the power systems business unit of MHI's existing subsidiary, Mitsubishi Heavy Industries India. MPS India will formulate regional business strategies and oversee business involving the entire spectrum of power systems and related products, centered on gas turbine combined cycle, from marketing, construction and installation to provision of after-sale services.

MHI already has two JV companies with L&T for taking care of the expanding demand for coal based power plants in the country. The new company will also support management of the two ventures.