Following a gradual improvement in the labour scenario and lockdown restrictions, Kalpataru Power Transmission Ltd’s order inflow has picked up in recent months. Its order book position as of September 30, 2020, stood at Rs.12,292 crore.
In a release, KPTL said that it received new orders worth Rs.3,225 crore in the period March 1, 2020 up to around end-October 2020. These new orders related largely to power T&D works.
In the months of September and October 2020 alone, the Mumbai-headquartered EPC company landed new orders worth Rs.755 crore. Besides, it was at L1 position with respect to orders aggregating Rs.2,400 crore.
The order book position of Rs.12,292 crore discussed above, includes unexecuted orders of Linjemontage i Grastorp AB, a Swedish EPC firm in which KTPL acquired 85 per cent stake in March 2019. It is learnt that Linjemontage’s standalone order book, as of September 30, 2020, was around Rs.823 crore.
Of KPTL’s Rs.12,292-crore order book, as of September 30, 2020, international power T&D orders had the highest share of 47 per cent, followed by railway projects with 25 per cent. Oil & gas projects accounted for 16 per cent, and domestic power T&D projects, 13 per cent.
Sale of power transmission assets
Kalpataru Power Transmission, besides being an EPC contractor for power T&D projects, is also a developer of power transmission assets awarded under the tariff based competitive bidding (TBCB) mode. However, KTPL intends to exit the “developer” mode and is in the process of selling its power transmission assets with a view to reduce debt and support future growth.
Here is an update on the three power transmission assets developed by KPTL:
- Jhajjar KT Transco Pvt Ltd: KPTL has sold this asset to India Grid Trust (IndiGrid) for an enterprise value of Rs.310 crore. Cash flow from sale has been received.
- Alipurduar Transmission Ltd: KTPL has signed definitive agreements with Adani Transmission to sell this operational asset for an enterprise value of Rs.1,286 crore. Sale closure is expected in November 2020 itself.
- Kohima-Mariani Transmission Ltd: Construction work on this line was completed in October 2020 and full commissioning is expected in Q3 (October to December) of FY21. KPTL has entered into an agreement to sell this asset to CLP India.
(Featured photograph for illustration only)
