Reliance Infrastructure Limited
(RInfra) is set to win a Rs 1,000 Cr order from Nuclear Power Corporation of India (NPCI) after it emerged as the lowest bidder for an engineering and construction contract for the Kudankulam plant. Reliance Infra is now shifting its focus to cash contracts as a part of its strategy to become “asset light”. As a result, the management has stated that they are looking to increase the company’s EPC order book.
NPCI had opened bids for EPC tenders related to the third and fourth units of the Kudankulam nuclear power project (1,000 MW each). RInfra emerged as the lowest bidder beating Tata Projects and Larsen & Toubro. The project duration is estimated at 56 months. The project entails the design, engineering, procurement, manufacture, supply, erection and construction, testing, commissioning, handing over and performance guarantee of common services, systems, structures and components for the plant in Tamil Nadu.
This move is part of the government’s push into increasing the generation of nuclear power. The government has already approved 10 new nuclear reactors this year. The pressurized heavy-water reactors (PHWRs) have an aggregated capacity of about 700 MW. India plans to have a nuclear power generation capacity of 63,000 MW by 2030, from its existing levels of 6,780 MW.
Reliance Infrastructure Ltd is currently trading at Rs 459, up by Rs 5.85 or 1.29% from its previous closing of Rs 453.15 on the BSE. The scrip opened at Rs 460 and has touched a high and low of Rs 463.65 and Rs 458 respectively. So far 409626(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 11917.39 crore.