OM Infra Ltd expects that its contract related to the Arun-3 hydropower project will turn revenue-accretive during the ongoing quarter (June to September) of FY22.
In an investor presentation filed recently with stock exchanges, OM Infra said that the contract related to hydro-mechanical works of the Arun-3 hydropower project in Nepal will start generating revenues from the current quarter. In April 2018, project developer SJVN Ltd had placed a Rs.157-crore contract for all hydro-mechanical works, including pressure shaft steel liner, of the 900-mw Arun-3 project located in Sankhuwasabha district in Nepal.
Meanwhile, the Shalpurkhandi project in Punjab has already started generating revenues, OM Infra said. The Rs.554.46-crore contract was placed by Punjab Government’s Water Resources Department in January 2021. This contract, involving the construction of two power houses, is the biggest contract in OM Infra’s current order book.
Order book
As of March 31, 2021, the outstanding order book position of OM Infra stood at Rs.1,864 crore. This order book came from 17 projects spread over multiple states. Three of these projects are located overseas—two in Africa and one in Nepal.
In terms of hydro-mechanical works for hydropower projects, the outstanding order book was Rs.316 crore, or 17 per cent. Including the Punjab “power house” contract discussed above, the share of the hydropower sector worked out to 47 per cent. Other areas where OM Infra’s order book is spread include irrigation and dams.
Hydro-mechanical works
Speaking of hydropower projects alone, OM Infra is currently providing hydro-mechanical services to projects of the following seven project developers. The value specified represents the unexecuted order value as of March 31, 2021, and NOT the full contract value.
- Government of Gujarat (Gujarat, Rs.39.38 crore)
- Uttaranchal Jal Vidyut Nigam (Himachal Pradesh, Rs.14.17 crore)
- NTPC (Himachal Pradesh, Rs.16.43 crore)
- Government of Tamil Nadu (Tamil Nadu, Rs.92.10 crore)
- SJVN, Arun-3 (Nepal, Rs.142.13 crore)
- NHPC (Himachal Pradesh, Rs.7.66 crore)
- NEEPCO/NTPC (Arunachal Pradesh, Rs.4.10 crore)
Featured photograph is for illustration only
