Patel Engineering Ltd declared L1 for Two Micro Irrigation Projects worth Rs. 1,265 Crore

Water Resources Department, Government of Madhya Pradesh and Visvesvaraya Jala Nigam Ltd ("VJNL") respectively have declared a Mumbai based infrastructure company, Patel Engineering Limited ("Company" or "PEL") as L1 for a Rs.998.75 crore contract for the works including survey, investigation, designing, and construction of SHER Dams (4 No. of Dams) with all ancillary works including rising / gravity main and pipe distribution network works in the State of Madhya Pradesh ("Sher Irrigation Project")and a Rs.266.38 crore contract for the works including Survey, Design, Supply, Installation, Testing and Commissioning of Micro Irrigation System under Tumkur Branch Canal Package - III in the State of Karnataka (Tumkur Branch Canal project).

The works for Sher Irrigation Project are scheduled to be completed in a period of 60 months and further includes Management, Operation and Maintenance (MOM) for a period of 60 months after completion. The said Project is to executed in a Joint Venture, of which PEL's share is 35%.

Similarly, Works for Tumkur Branch Canal project are scheduled to be completed in 24 months post which the Company will undertake Operations and Maintenance works for a further period of 60 months. The said Project is to executed in a Joint Venture, of which PEL's share is 51%.

Majority of the Company's order book comprises of projects which are awarded by Central / State Governments or other Government undertakings/ Public Sector Undertakings.

Mr Rupen Patel, Chairman and Managing Director, Patel Engineering Limited said, "India being one of the major players in the agriculture sector worldwide where the primary source of livelihood for about 58% of India's population depends on agriculture, the sector is receiving tremendous focus from the Government of India. The agriculture sector in India is expected to generate better momentum in the next few years due to increased investment in agricultural infrastructure such as irrigation facilities, warehousing and cold storage and we are thankful that we can be a part of growth story. In the recent past, we are declared L1 for four other irrigation projects located in Maharashtra, Madhya Pradesh and Karnataka. Further these two new projects will help strategically deploy and utilise resources more efficiently. With these two new L1 projects, our share of order wins including L1 in this financial year is around 5,900 crores."

Shares of Patel Engineering Limited was last trading in BSE at Rs. 14.48 as compared to the previous close of Rs. 14.46. The total number of shares traded during the day was 693809 in over 927 trades.

The stock hit an intraday high of Rs. 15.15 and intraday low of 14.30. The net turnover during the day was Rs. 10099617.00.

Source : Equity Bulls

Keywords

PatelEngineering INE244B01030 OrderWin L1 MicroIrrigationProjects MadhyaPradesh Karnataka