Patel Engineering - Gammon JV bags Rs 806 crore order for Rampur Hydro-electric Project

Patel Engineering Ltd has announced on March 30, 2007 that the company has bagged order a Rs 806 crore order in joint venture with Gammon Ltd from the Satluj Jal Vidyut Nigam Ltd for the 434 MW Rampur Hydro Electric Project. Satluj Jal Vidyut Nigam Ltd is a joint venture between the Government of India and Government of Himachal Pradesh.

The project is located on the river Satluj in Shimla and Kullu Districts of Himachal Pradesh. The project work involves construction of a 15-km-long head race tunnel (HRT), a 140-m deep surge shaft and power house on the right bank of river Satluj near Village Bael in district Kullu. The project will be completed in the next 54 months.

Commenting on the development, Sonal Patel, Whole Time Director, of the Company said, "The hydro power sector is witnessing significant traction as the hydro power capacity addition during Tenth Five Plan (FYO3-FYO7) is expected at 8,762 MW. Further, Ministry of Power has set a target of capacity addition of 20,000 MW during the Eleventh Plan (FYO8-12)."

"Given the fact that a large number of hydro power projects are being awarded and the construction component accounts for 70% of the cost of a hydro power project, we believe that this segment offers good growth potential," Sonal Patel added. Interestingly, the Company has participated in 22 per cent of India’s 32,000 MW hydroelectric projects.

The Company's order book position stands at around Rs 4800 crore, which includes Michigan Engineers order book of Rs 50 crore in urban infrastructure. Of this Rs 4800 crore, 50 per cent of the orders are from hydro division, 28 per cent irrigation and 22 per cent in transportation and other sectors.

Source : Equity Bulls

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