The Hindu Business Line : Patel Engg may acquire overseas coalmines

Patel Engineering, a civil engineering company with specialisation in complex infrastructure projects including dams and micro tunnelling, is moving ahead to acquire large coalmines in Indonesia and Africa, according to market grapvine. Though Mr Rupen Patel, Managing Director, admitted that the company was pursuing diversification into thermal and hydropower as an IPP, he declined to comment on the market speculation regarding coalmines. He, however, clarified that the co mpany’s proposal for raising funds – both debt and equity – will not be for its power foray but for the expansion of the infrastructure business only. “For the power sector, we are likely to draw up separate capital expenditure plan in the foreseeable future. We have bid for several power projects with capacities ranging between 100 MW and 500 MW,” he added. Its maiden 1,200 MW thermal power venture at Bhavnagar in Gujarat has been taken up through a SPV. It has also formed a SPV for a realty project, Mr Patel confirmed. The company has a total land bank of 500 acres. The company, meanwhile, has placed a broad proposal before shareholders for unnamed acquisitions and the financing up to around Rs 1,344 crore could be through its five subsidiaries, four domestic and one overseas. The deadline set for the postal ballot acceptance is on or before September 27. The result may be announced on September 28. The stock on Thursday closed at Rs 450, representing a gain of 10 per cent in the last one month. The combined volume on the NSE and BSE was 86,000 shares. — Jayanta Mallick

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