Patel Engineering secures new orders worth Rs 4470 mn

Patel Engineering Ltd has announced that the Company has bagged its first annuity based Build- Operate- Transfer (BOT) project worth Rs 4100 million from National Highways Authority of India (NHAI). This project on NH-7 in Karnataka, jointly executed by the Company and KNR, and will generate a total revenue of Rs 11858.40 million. The work on the project is expected to commence from December 2006.

"Until recently, most highway projects were structured as cash contracts. This pattern is now changing towards annuity based BOT and BOOT projects with emphasis on Public - Private Partnership", said Mr. Rupen Patel, Managing Director, of the Company.

He further added, "Patel Engineering, as part of its growth strategy, is moving towards annuity-based projects in road construction and looking at opportunities in hydropower sector as an independent power producer (IPP)."

The NHAI project is for design, construction, development, finance, operation and maintenance of National Highway NH-7 route from Km 463.6 (located in Andhra Pradhesh / Karnataka Border) to Km 524 (Avathi Village). Besides this, the project also involves improvement, operation and maintenance of Km 524 (Avathi Village) to Km 527 (Nandi Hills Crossing) and Km 535 (Devanhalli Village) to Km 539 (Meenukunte Village) on NH-7 in Karnataka under the North- South Corridor (NHDP Phase II).

Meanwhile, the Company has also bagged a Rs 371.30 million contract from the Municipal Corporation of Greater Mumbai (MCGM) for the rehabilitation of sewer lines by GRP Liners using Trenchless Technology.

Source : Equity Bulls

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