Reliance Infrastructure bags Rs 1,081 crore contract; stock gains marginally

Reliance Infrastructure share price gained marginally after the company received a Rs 1,081 crore purchase order from Nuclear Power Corporation of India Limited (NPCIL) for engineering, procurement and construction (EPC) contract for Common Services System, Structure & Components (SSC) package and allied civil works of Unit -3 and 4 of Kudankulam Nuclear Power Project, a company statement said here on Monday.

The stock advanced over 1 per cent to hit its intraday high of Rs 452.80 on the BSE. 

The contract entails design, engineering, supply, erection, testing and commissioning of SSC package and allied civil works on EPC basis. The project is to be commissioned in 56 months, the statement said.

The contract value is inclusive of taxes and duties and also contains imported component of $23.2 million. EPC division of the infrastructure major has won the contract amidst competition from leading EPC players like BHEL, L&T, Tata Projects and BGR.

"This is an extremely prestigious and important project for us. It will give us an opportunity to showcase our expertise in design, construction and project management of power projects. We are confident of delivering the project on time and with international quality standards," said Arun Gupta, CEO, Reliance Infrastructure Limited EPC.

With a clear focus to position itself in India`s growing infrastructure sector, and a multitude of projects in the offing in areas as diverse as power, metro rails, nuclear power plants, air quality control, marine, railways, ports, and mega infrastructure projects, Reliance Infrastructure Limited is targeting EPC opportunities worth Rs 2 lakh crore and increase the EPC order book to Rs. 50,000 crore by FY19.

In recent past, Reliance Infrastructure Limited has secured multiple EPC orders in power sector including 2 x 250 MW lignite-based CFBC Thermal Power Project from NLC India Limited, Flue Gas Desulphurization works of 3 x 500 MW power plant from NTPC Limited, BOP works of 2X800 MW coal based Thermal Power Project from TANGEDCO and 750 MW Combined Cycle Power Plant along with a 500 MMSCFD Floating Storage Re-gasification Unit based integrated LNG terminal project in Bangladesh.

Reliance Infrastructure Limited EPC division has earlier executed large projects worth Rs 33,000 crore ($5 billion) including the 3,960 MW Ultra Mega Power Project at Sasan, Madhya Pradesh.

(With inputs from PTI)