Va Tech Wabag
has won a desalination contract from Mangalore Refinery and Petrochemicals for a sum of Rs467cr. The company made the announcement on Monday evening, post market hours. Reacting to the news, shares of the company gained ~2.5% in intraday trade on Wednesday.
The project is a design and build contract. The scope of the project includes engineering, supply, erection, construction and commissioning of a 30mn litres per day (MLD) sea water desalination plant over a period of 22 months. WABAG will build the plant using state-of-the-art technologies, including sea water reverse osmosis, brackish water reverse osmosis and ultrafiltration systems.
The project also includes cross-country piping of 11km to deliver the water to MRPL's refinery. The plant aims to minimize the fresh water dependency of MRPL once completed. Post successful commissioning, WABAG will also be awarded a contract for operation & maintenance of the plant for a period of 10 years.
Commenting on this order, Mr. Pankaj Sachdeva, CEO - India Cluster said, "This desalination order win on the back of similar order in Africa last quarter, is a testimony to WABAG's technological edge in providing innovative solutions at competitive prices across the globe."
Va Tech Wabag Ltd is currently trading at Rs297.50 up by Rs7.45 or 2.57% from its previous closing of Rs290.05 on the BSE.
The scrip opened at Rs296.05 and has touched a high and low of Rs299.20 and Rs296.05 respectively. So far 22,616 (NSE+BSE) shares were traded on the counter.