Patel Engineering secures order worth Rs 518 crore

Patel Engineering Ltd on May 30, 2007 has announced that the Company has bagged an annuity based Build Operate-Transfer (BOT) project worth Rs 518 crore from National Highways Authority of India (NHAI). The project would be located on NH-7 in the State of Andhra Pradesh under North-South Corridor (NHDP Phase II). The project will jointly be executed by the Company and KNR Constructions. The semi-annual annuity project will generate total revenue of Rs 1597.32 crore.

The NHAI project work includes design, construction, development, finance, operation and maintenance of Islam Nagar (km 230.00) to Kadtal (km 278.00) of Nagpur-Hyderabad section on NH-7 in the State of Andhra Pradesh under North-South Corridor (NHDP Phase II). The work also includes approximately 32 kms four laning bypass out of total 48 kms.

Mr. Rupen Patel, Managing Director, of the Company said, "We would focus on selective road development projects following government's new initiative to encourage private sector participation in the road sector development through BOT (Built Operate & Transfer) Annuity projects."

Recognising the present deficiencies in the road network, the government has assigned a high priority to the National Highway Development Programme (NHDP). According to NHAI data, a total of 23,546 kms of roads would be constructed in the next two year. Further, to encourage participation of the private sector, the Department of Road Transport and Highways has laid down comprehensive policy guidelines for private sector participation in the highway sector to encourage private sector participation. It has been decided that all the sub-projects in NHDP Phase-III to Phase-VII would be taken up on the basis of PPP on Build Operate and Transfer (BOT) mode.

As on March 31, 2007, the Company's order book position stood at around Rs 5,000 crore. Around 55 per cent of the orders are from multipurpose water supply and power projects, 25 per cent from irrigation and 20 per cent in transportation and other sectors.

Source : Equity Bulls

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