Sterlite Technologies bags power transmission order in Odisha

Sterlite Grid, a wholly-owned subsidiary of Sterlite Technologies has won the Rs 2596 crore ‘Common Transmission System (II)’ project for generation projects in Odisha. The project has an intention of transmitting power from power generation project of Odisha Power Generation Corporation with a total capacity of 1320 mega watt (MW).

Sterlite Grid is one of the largest private operators of independent transmission systems in India. Sterlite Technologies is in the manufacturing and sale of power and telecom products and solutions, and setting up of transmission networks. The company operates in two business segments viz. telecom product and solutions business, and power product and solutions business.

Sterlite Grid witnessed competition from Adani Transmission, Essel Infrastructure in this bid. The bidding was done through tariff-based competitive bidding (TBCB) route. Sterlite Grid's winning bid at Rs 140 crore per annum was lower than the nearest competitor.

The Common Transmission System (II) project constitutes a 400 km line. This awarded project is one of eight key power transmission projects. There were five projects already offered. Adani Transmission won three projects in Chhattisgarh and Sterlite Grid, Power Grid & Kalptaru secured one each. The remaining three remain to be tendered in FY16. The Sterlite Technologies consolidated order book stood at Rs 4400 crore. The order book is equally distributed in both telecom and power segments. The cabinet is also embarking to open up Rs 1 lakh crore for projects in transmission sector during current fiscal year. The government is in the process of granting transmission connectivity to 20 power plants. There were around a dozen states that have already sent their consent to be a part of the Ujjawal Discom Assurance Yojana ( UDAY).

The share price of Sterlite Technologies increased by 4.18 per cent on bourses in early trade and is trading at Rs 97.1 on intraday basis.