Nagarjuna Construction Company Ltd is set to add a Rs 5,000-crore EPC (engineering, procurement and construction) contract from the 1,320 MW thermal power plant coming up at Krishnapatanam under a joint venture with another infrastructure company, Gayatri Projects Ltd.
The project is being executed with NCC holding 55 per cent stake and Gayatri Projects, the remaining.
NCC, which is setting up the Rs 7,000-crore greenfield plant having taken over the interest from Nelcast Ltd last year for Rs 150 crore, is poised to achieve financial closure for the power plant early next quarter.
“We have struck a deal for the Rs 5,300-crore debt component for the project and expect to sign up with a clutch of banks and financial institutions shortly. The Rs 1,700-crore equity will be shared by NCC and Gayatri,” Mr Y. D. Murthy, CFO and Executive Vice-President, Finance, NCC, said.
Clearances through
Mr Murthy told Business Line that “the project has received all necessary clearances and is poised to take off. We see a lot of opportunities coming up for developing new power plants in the country. Several of the independent power producers (IPPSs) which have secured clearances but are finding it tough to take them ahead, are scouting for partners for execution.”
Referring to business prospects, Mr Murthy said that a guideline of 15 per cent growth has been set for financial year 2011-12, which would mean revenues of Rs 7,200 crore, up from Rs 6,230 crore in FY 2011.
“We believe that the next few years would be robust for the infrastructure sector. Last year, we did face a few challenges. So was the case with other infrastructure players in the country,” he added
Growth trend
Growth was at about 18 per cent in FY 2009, 22 per cent in FY 2010 and a relatively muted 6 per cent in FY 2011. The muted growth was due to, among other factors, slow order-book flow, extended period of payment, clients getting cautious and higher costs. However, the sector is bouncing back, he explained.