Sterlite Optical Technologies receives contracts for INR 1.5 billion from Power Grid Corporation of India

Sterlite Optical Technologies Ltd has announced that it has received contracts valued at INR 1.5 billion for manufacture and supply of 400kV & 765kV Power Transmission Conductors to Power Grid Corporation of India (PGCIL). Deliveries, scheduled over the next 22 months, are expected to commence within February 2007.

The Company acquired the Power Transmission Business from Sterlite Industries (India) Ltd in August 2006.

'Power for all by the year 2012' is the vision of the Ministry of Power, Government of India. India's transmission perspective plan focuses on the creation of a 'National Grid' in a phased manner by adding over 60,000 km of Transmission Network by 2012. Such an integrated grid shall evacuate additional 1,00,000 MW by the year 2012 and carry 60% of the power generated in the country. The existing inter-regional power transfer capacity is 9,000 MW, which is to be further enhanced to 30,000 MW by 2012 through creation of "Transmission Super Highways". For creation of such a grid, an investment of Rs 710 Billion is envisaged.

The Company is a significant contributor to this vision through indigenous manufacture of a complete range of power transmission conductors at Extra High Voltages (400kV - 800kV), High Voltages (66kV - 220kV) and power distribution conductors (11kV-33kV) the Company currently supplies about 23% of India's total demand for power transmission & distribution conductors.

Says Mr. Pravin Agarwal - Director of the Company, "Our business strategy is to consolidate. our market share in India and build a global customer base for our Company. We have shared a positive business relationship with PGCIL that spans about a decade and in a short while, we have become the preferred vendor to power & utility Companies across the world. We look forward to growing these relationships & building new ones."

Source : Equity Bulls

Keywords