GE Power India Ltd (GEIPL) is now independently qualified to bid for flue-gas desulphurization tenders issued by state government entities.
In a recent investor conference, the company’s senior management said that GEIPL was now qualified by itself to bid for FGD-related tenders floated by state government utilities.
GEIPL now has 100 per cent local competence both on acquisition and execution of FGD projects. However, GEIPL is now focusing on competence development and strengthening of technology so as to get the company qualified for all tenders.
It may be recalled that in February 2022, parent company GE Steam Power decided to gradually reduce its stake in GE Power India and eventually “depromotize” it over the next 36 months. This in turn followed an announcement by GE to completely exit the coal business worldwide.
GE Power India now needs to develop full local competence and technology so as to taken forward its FGD business in India on its own. GEIPL could bid for all sorts of tenders because of the qualification and competence of its parent group GE.
GEIPL is optimistic of the FGD business in India. The company has estimated that FGD-related tenders worth 6 GW have been floated in the first quarter (April to June) of FY23 as against 9 GW in the entire year FY22. The FGD tendering business is going to pick up from the second quarter (Q2: July to September), GEIPL foresees.
Order intake
Meanwhile, GE Power India’s new order intake in Q1 of FY23 stood at around Rs.1,007 crore as against a much lower Rs.266.60 crore in Q1 of FY22. The order intake was dominated by the mega Rs.863.40 crore order related to the upcoming Saundatti hydropower plant in Karnataka. The order was placed in April 2022 by Greenko Group.
As of June 30, 2022, GEIPL’s outstanding order book stood at around Rs.4,290 crore.
(Note: This story is based on a recent investor conference held recently by GEIPL, the transcript of which was filed on stock exchanges.)
