Mumbai, Nov. 9 -- Bajel Projects has secured two engineering, procurement and construction (EPC) contracts with a combined value of about Rs. 17 bn, including a Rs. 15 bn transmission project in Gujarat that is the company's largest order to date. The contracts cover high-voltage transmission lines, substations and related infrastructure, with execution periods of 36 months and 18 months respectively from the issuance of purchase orders.
The Gujarat award was made by Lakadia A Power Transmission, a special purpose vehicle owned 26 per cent by Bajel Projects and 74 per cent by the National Investment and Infrastructure Fund (NIIF), through AnantGrid Projects One. The project involves constructing about 270 km of 765 kV double-circuit transmission lines between Halvad and Vadodara, as well as additional works at substations in Halvad, Vadodara and South Olpad.
The Rs. 15 bn value, inclusive of GST, covers a transmission system intended to evacuate nearly 14 GW of renewable power from Gujarat's Lakadia, Jam Khambhaliya and Jamnagar regions. Bajel Projects will execute the contract over 36 months from the purchase order, and the company has classified it as an ultra-mega order under its internal policy.
The second contract, valued at more than Rs. 2 bn, has been awarded by Tata Power Company for 400 kV gas-insulated substation (GIS) infrastructure at Dharavi and Ghatkopar in Mumbai. The scope includes GIS receiving substations, associated electrical systems, substation automation, communications infrastructure, balance-of-plant equipment and civil works, with completion scheduled within 18 months of the purchase order.
The Mumbai contract has been categorised as a major order, with both classifications based on values inclusive of GST. Bajel Projects said the Gujarat transaction is a related-party transaction because of the ownership connection with the project vehicle, but was conducted at arm's length after prior shareholder approval; the Tata Power contract is not a related-party transaction.
The order wins strengthen Bajel Projects' position in high-voltage transmission and substation infrastructure as investment rises in renewable power evacuation, grid expansion and electricity supply. The company will need to manage the additional execution commitments associated with the scale and timelines of the projects.
Published by HT Digital Content Services with permission from Construction World.