Patel Engineering plans to Foray into Power Generation

Patel Engineering Ltd has announced that the Company plans its maiden venture in Thermal Power Generation by plans of setting up 1200 MW Thermal Power Plant near Bhavnagar with a proposed investment of Rs 5,000 crores.

The Company has now decided to foray into IPP's (Independent Power Producer) with its maiden venture coming up in the thermal space through its subsidiary Patel Energy Ltd. The Company is also actively looking at IPP's for power generation in the Hydro Power space.

The coal for the plant will be imported from abroad. The plant will confirm to international norms with regard to the environment. The electricity generated will be sold to power traders, captive consumers and state governments.

The project will be undertaken under a SPV and will be funded by a mix of debt and equity.

The Company's current order book without considering the said project is around Rs 5000/- crores of which 55% of the orders are from multipurpose water supply and power projects, 25% from irrigation and 20% in transportation and other sectors.

The Company as lead partner had recently bagged a Rs 806 crore order from the Satluj Jal Vidyut Nigam Ltd for the 434 MW Rampur Hydro Electric Project in joint venture with Gammon India Ltd.

Source : Equity Bulls

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