Godrej & Boyce very recently won the mandate to build Mumbai’s first 400kV GIS substation. Tell us more on the scope of the order.
Yes, G&B has won the mandate related to 400kV Kharghar-Vikhroli power transmission project by Adani Transmission Ltd. This includes the greenfield 400/220kV GIS project in Vikhroli along with the brownfield 400kV Kharghar substation. The project, when commissioned, will inject 1,500 MVA into the Mumbai city grid and will help immensely in meeting the peak power demand.
What challenges do you foresee in this GIS project?
The 400kV GIS project is to be constructed in a limited land parcel, which brings a challenge for engineering, design and execution. Also, at the Kharghar end, land is undulated, making cutting and leveling another challenge. Nevertheless, we have already completed the design and the project is in an advanced stage of construction.
Given that G&B has full-fledged fabrication facilities, is G&B going to manufacture or fabricate any component for this contract?
Being an EPC player, G&B will be procuring the material/equipment from approved suppliers. G&B is not going to manufacture any structure or fabricate any items required for this project.
“Over the last five years or so, key components for transformers, busbars and isolators have largely been indigenized. However, for critical equipment like GIS, there is still a long way to go.”
What is your view on India’s self-reliance in manufacturing key components for GIS substations, such as transformers, busbars, isolators, etc?
The power sector in particular will be benefitted the most since a large portion of component/equipment is still imported. Foreign OEM players have great scope to invest in India and set up large manufacturing plants.
Over the last five years or so, key components for transformers, busbars and isolators have largely been indigenized. However, for critical equipment like GIS (Gas Insulated Switchgear), there is still a long way to go. This being a new technology, it has good growth potential. More players need to set up manufacturing facilities in India across all voltage levels including 765kV.
GIS substations are being increasingly preferred over the conventional air-insulated ones (AIS). What are the challenges associated with building of GIS substations vis-à-vis AIS?
GIS substations are preferred mainly because of their compact structure, drastically reducing the land requirement for building the substation. This is a critical factor especially for metro cities where availability of free land is a big constraint. Besides this advantage, the technologically superior GIS also offers hassle free O&M. GIS substations are slowly picking up pace in India and the price gap between the traditional AIS and GIS is also getting bridged. Manufacturing of GIS is a complex process and the lead time — from design approval to testing and commissioning— is higher compared to AIS. The availability of required spares can also be a challenge since there are very few manufacturers at present and the lead time for making such spares is also high. However, this is being addressed by ordering the required spares upfront. There are no major challenges in construction except for the time-consuming activities related to construction of the GIS building.
“We have now acquired the competency to execute EHV projects in any territory and terrain.”
We understand that G&B has commissioned over 30 EHV substations ever since it entered the power T&D space in 2010. What comes to your mind as the most challenging project so far?
We have commissioned projects at different voltage levels across the country in challenging terrains. We have executed several complex projects. One such project which comes to mind is the 220kV GIS at Sagardighi, West Bengal. There was space constraint for construction of ‘Gantries’ for the termination of 220kV lines.
We proposed the designed engineering layouts and pre-engineered building (PEB) in such a way that the 220kV lines could terminate on the PEB itself, saving huge space. This solution involved complex engineering designs and was not at all an easy task! We won client accolades for this project and the project has been running satisfactorily from last two years.
Apart from this project, we are also executing EHV projects in tough terrains in the northeastern states with extreme climate conditions and difficulty in transporting material and equipment.
“We have now acquired the competency to execute EHV projects in any territory and terrain.”
May we presume that the EHV substations that G&B has commissioned so far have been for private transmission developers, or have to also executed contracts for government companies like Power Grid Corporation of India, state transmission utilities, etc?
In fact, majority of our EHV projects have been executed for government companies like Power Grid Corporation of India Ltd (PGCIL) and state power utilities. We have also executed projects for BHEL, Indian Oil Corporation and private utilities like Tata Power. The Vikhroli EHV project is our first for a private transmission developer.
India’s power transmission infrastructure is steadily moving to the 765kV voltage class, especially seen in interregional lines. Is G&B building its competency to eventually bid for projects in this space?
We have requisite competencies and capabilities to execute substation projects up to 765kV. We have already completed one 765kV civil project for PGCIL and have bid for a few 765kV substation projects.
“We are in the process of exploring power T&D opportunities overseas. We are focusing on specific regions like SAARC countries to start with.”
The power T&D infrastructure space offer tremendous opportunities for EPC contractors in the overseas markets. Any plans in this direction?
Yes, we are in the process of exploring power T&D opportunities overseas. We are focusing on specific regions like SAARC countries to start with. We will be participating in the upcoming tenders in this region and targeting order booking of around Rs.200 crore during this financial year.
We understand that G&B plans to capture 25 per cent market share of the addressable market in the domestic power T&D contracting space. Please take us through your strategy.
The power transmission & distribution sector in India is growing, and we have aligned our offerings to leverage this growth. As part of our strategic business plan, we have set an ambitious target of reaching Rs.1,500 crore worth of revenues in the power T&D business, by 2024.
We will continue to expand our business in the transmission segment, especially focusing on EHV substation projects up to 765kV — both in AIS and GIS. We have plans to expand our business to other sectors like railways and will focus on OHE (overhead electrification) and E&M (electrical and mechanical) opportunities. As part of our growth plan, we are now bidding for private entities too and looking forward to opportunities in solar ground-mounted EPC projects as well. As mentioned earlier, we are evaluating the overseas opportunities and would like to work in the SAARC countries to start with and expand to other countries at a later stage.
(Note: Godrej Electricals & Electronics is part of Godrej & Boyce, abbreviated as “G&B” in this interview. Photographs used in this interview relate to power T&D projects executed by Godrej & Boyce.)
