Ballard partner likely to miss India deadline

TORONTO (Reuters) - Ballard Power Systems Inc said on Wednesday its partner in a back-up power system venture in India, IdaTech, will likely miss a development deadline that will hurt Ballard's 2010 output.

Ballard, which is developing a fuel cell stack for the power system, and IdaTech, which is developing the hydrogen and natural gas-based system, are required to meet certain product testing timelines under a deal between the partners.

Ballard said in a statement that the testing timelime for the hydrogen system was met in July, but IdaTech has indicated that the natural gas system, scheduled for October 16, will likely not meet that date.

"We are certainly disappointed with this development and the implications on our 2010 product volumes," said John Sheridan, Ballard's president and chief executive officer.

He said Ballard remained committed to the Indian telecom market.

The Ballard-Idatech agreement provides for an extension of the testing deadline for up to six months if IdaTech files an acceptable remediation plan by November 16, Ballard said.

Shares in Ballard, based in Vancouver, British Columbia, closed at C$2.18 on the Toronto Stock Exchange on Tuesday.

(Reporting by Nicole Mordant editing by Janet Guttsman)