The Hindu Business Line : Rolta could benefit from nuclear deal

Rolta India could be one of the less prominent beneficiaries from the nuclear deal. Rolta India derives 32 per cent of its revenues from providing engineering design and automation software and may have reasonable domain expertise, in addition to pure technical capabilities to cater to EPC players.

While it may difficult to estimate what Rolta’s slice from the nuclear deal could possibly be worth, there are a few factors in its favour which could translate into business opportunity.

One, Rolta counts L&T and BHEL among its clients, who by themselves would be vying for the opportunity.

Two, its joint venture in partnership with the Shaw group could open up further prospects.

The Shaw group has executed the design and construction of nuclear plants for clients in the US. The joint venture targets opportunities in the nuclear plant design space and already has deal wins in countries such as China.

Estimates suggest that 40000 MW of power may be generated through nuclear power plants in the country over the next 10-15 years.

Of the $80-billion opportunity, engineering services portion could be a $5-6 billion, a portion of which Rolta hopes to translate into its order book.

But it may be several years before any opportunity becomes significant contributor to revenues. The market seems to have taken cognizance of this fact as the stock rose five per cent on Monday, following the NSG clearance last Saturday.

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