power mech projects ltd Management discussions
Indian Economy & Industry Overview
The Indian economys recovery process after Covid 19 pandemic in 20-21 is on the line of consolidation. As per the projections from RBI and other institutions including World bank, there is a reasonable consolidation of growth and the industry is confident that there will be every possibility of sustained growth in the coming years. This is in spite of serious global conflicts with the ongoing war between Russia and Ukraine. India playing a pivotal role in Group 20 nations, as President and providing leadership and direction which is also helping the nation to improve ties with leading developed and other nations which can hugely help in technology and investments in propelling manufacturing and service growth.
Consumer inflation moderating at 5% coupled with good harvests based on helpful monsoon should also cool food inflation. It is expedited that in the next 5 years Indian economy is expected to grow at 6.8% driven by capital and productivity improvements. Capital investments at a higher scale by the Government and new investments by the private sector should drive medium term growth. The huge emphasis on better infrastructure can improve the connectivity and lower logistics costs for industries. It is expected that corporate growth will improve despite global slow down and interest rates hikes. Improved capacity to lend, with improved capacity utilisation of manufacturing sector and very positive impact of more infrastructure creation and PLI schemes have created right conditions for private sector to increase investment. It is expected that an additional 111 Lakh Cr of capex plus infra will come compared with 66 Lakh Cr in the previous 5 years which is about 70% higher. There will be more focus on green investments linked with emphasis on controlling greenhouse impact on global environment. Also India being a very large domestic market, would considerably add to the attractiveness of foreign investments.
Indias exports of merchandise and services improved to USD 770 billion from USD 613 billion with a growth of 25.6%. Indias GST collection also has been continuously increasing which is a reflection of growth of both in manufacturing and services with a total collection of around 18 Lakh Cr with a growth of 21.4%. Indias growth story has been scripted by huge investments in infrastructure and focus on high value capital investments by the Government. It is obvious that Government has become the enabler in managing the economy and taking a lead to invest heavily both in infrastructure and people centric social service segment. The unique feature of these investments is capacity building on Digital infrastructure which can hugely help in economic growth. The tax buoyancy is also propelling these investments and growth story.
There were also many policy initiatives which were helpful in sustaining the growth with PSU bank mergers, continued focus on disinvestments, reduction in corporate rate tax, Ujjwala scheme, ending retrospective taxation and creation of Bad Bank. Inflation that was high in the previous years has been brought down to 4.7% from peak of 7.8%. This had the follow up action of increasing of Repo rate from 4% to 6.5%. Sustained capital flows from outside will also sustain this growth momentum.
In the case of ease of doing business, India stood its position at 63rd position and with the Government emphasis on continued reforms improving itself from 142 position in 2014 in the World Banks report on the Ease of Doing Business that captured the performance of 190 Countries. The prolonged conflict in Europe could continue to impact supply chain status in keeping the commodity prices volatility for a longer period. Rising interests across the World also could also have some impact, but with continued infra focus and monetary support from the Central bank, we are in a better status to manage the challenges to sustain the growth agenda in the coming years.
A quantum jump in the policy initiative for infrastructure growth is now visible in the last few years and this is obviously cushioning the growth, when the non-financial corporate sector was unable to do investment. Consistent reforms have been made in the last 9 years in building trust which can unleash efficiency gains, through improved investment sentiment, better ease of doing business and more effective governance.
With the present stability in inflation and continued investments which is on the rise from year to year should also now propel private sector investments to add momentum to the growth story. In the backdrop of National Infrastructure pipe line (NIP) under implementation, synergised for better delivery management under Gatishakthi dash board for the last 3 years should see the sustained growth in the coming years. This should give confidence for the industry to focus on growth, better delivery management and contributing in improving exports. Making quantum jump in various arms of infra improvement for the people in urban development, rural connectivity, enhancement of power and water availability, improving the movement of goods both in the road and railways, urban transportation with greater emphasis on digitisation.
Power Mechs Business Overview
Power Mech over the years has been continuously updating and adopting the business strategy in catching up with the market dynamics and continuously changing business environment. Its continued growth story is the result of firmly establishing its preeminent position initially in the coal based power sector as a single point service provider first in undertaking installation works of the main plant equipment and then diversifying into various segments of balance of plant areas of civil, structural, piping and other equipment installation works. This effort led to consolidation of growth from 2012 to 2015. It was felt that for better execution of the main plant equipment of boilers and turbines, it makes lot of synergy in diversifying as part of backward integration in power plant construction in undertaking the complete civil and structural works. This helped the Company in
two ways, one was the needed diversification to expand the service profile and on the other side the integrated construction solution of undertaking both the civil/structural works and the main plant equipment brought the much needed synergy in construction and helping the customers for better project implementation. This also helped the customer interest in overcoming the interface issues involved with two different agencies works one for civil works and another for the equipment erection. The diversification into undertaking the main plant structures was achieved as the works related to this area of work was similar to many of the structural works undertaken for the main plant boiler works.
Power Mech was one of the first few major players to catch up with this change in the market with increasing presence of private sector players to improve the generation capacities. Opportunities that were available in the private sector of coal based power plants had witnessed huge capacity additions in the private sector for about 10 years starting with early 2000s which continued up to 2016 when Coal based capacity going up to nearly 23,000 MW per year. This huge increase in capacity addition by private and public sector investment needed substantial man power and construction equipment capacities over shorter periods of execution. The emphasis of private players was in cutting down the cycle time for reduced capital investments and faster revenue generation after commissioning. The large sized supercritical units of higher efficiency was the ideal market reach. Power Mech could also work on these new advanced and high efficiency power plant equipment and obviously had the first mover advantage in market penetration than its peers. The huge additions in supercritical units over last 15 years also helped the Company in forward integration of O&M practices needed to operate and maintain supercritical based power plants.
Company played a major role in the installation of high performance super critical thermal units of 660 MW /800 MW from the earlier sized units of 210/250/300/500 MW units. These large sized units offered economy of scale and the Company was the first mover in this new technology segment having established its expertise in the installation of main plant for the 5x800 MW Mundra and 5x660 MW Sasan as the Countrys first Ultra Meg Power plants. With reduced cycle times for installation was the key for the completion of these large sized thermal plants and the Company demonstrated its capability and so far completed 23 units of installed base of supercritical units of 660/800MW units.
With the advent of more of private sector investment into power sector the opportunities expanded with forward integration of O&M into the huge opportunities made available in the private sector power generation of operation and maintenance works both for short-term maintenance jobs and also long term annual operation and maintenance contracts for the main plant and auxiliaries. The focus in this segment was providing expertise both in maintenance of the plants and its operations. This area of business was hugely skill based and the Company filled up the same with induction of experts at senior levels and the core team was continuously expanded to enable the Company to establish itself as the lead service provider in the Country catering to 68,375 MW of installed base. For this business to grow the operation and maintenance skills were the key and the same were continuously updated and added to enable the plant operation and maintenance of large sized coal based power plants and this has become one of the main backbone of Companys growth and strength. Power Mech had built up huge expertise in the O&M of large sized power plants in undertaking all the maintenance related turn around jobs and also undertaking long term operation and maintenance jobs. The Company has built up a strong HR base with specialized skills needed. Coupled with deep penetration into the O&M segment of thermal power plants both in the long term O&M and also many works related to repair, maintenance, capital over hauls etc. The Company captured the huge space in O&M business in the Country particularly in the IPP sector and later in the State sector to reach an O&M presence in 42 plants with generating capacity at 68,375 MW across the Country helping with the contribution of about 25% - 30% of the Companys business. There is no doubt that the Company continues to play a major role as a leading service provider in the Country in the O&M sector of power plants.
The advent of undertaking and diversifying the geographical reach outside the Country was the logical approach to expand the business in undertaking power plant construction works in Libya, Bangladesh, Middle East, Nigeria etc. The Company has established itself well in the Middle East and African market for Power and Energy related projects both in the construction of power plants and post construction, maintenance works. The Company has established an installed based 6,792 MW mostly in gas and oil based thermal units for the export market of the Middle East, Bangladesh & Africa.
The 2015 Paris accord had significantly altered the global scenario on the shift for renewables as a solution to avoid greenhouse gas emissions, as coal was considered as a dirty fuel. This paradigm shift of policy to reduce greenhouse gas emissions, paved the way for large scale investments in renewables throughout the World. India having established its huge thermal capacity to meet the growing energy needs using the abundant coal availability had to shift its priority to renewable power generation and alter its policies after 2015. It is now seen that renewable power capacity has reached nearly 125GW (Excluding Hydro and Nuclear), with Hydro & Nuclear it is 179GW out of installed base of 416GW. This major change in investment priority to renewable power was a major change for the Power Mechs business and its growth and this was both a challenge and an opportunity. The Company rightly anticipated this tilt in the power generation investments and particularly in the coal based power plants had to be realigned towards renewable power. It is observed that the peak capacity additions of 22,460 MW in coal based plants in the year 2015-16 has come down to 1,460 MW in the year 22-23 and the total share of the renewable power has increased to 43% including hydro and nuclear power of the total installed base of nearly 416 GW.
With the near term growth to 450 GW by 2024 and nearly 817 GW by 2030 and the renewable going up from present 125 GW to 500 GW, the Company has reconciled to this changed scenario, and had realigned its business approach to massive diversification in finding new business and opportunities. It is important to state that this market change has been converted into an opportunity to diversify on a massive scale to non-power business over the last 10 years.
As the Company had established huge capacities both in HR resources and construction equipment a major effort was made into diversification away from coal based service business to non coal and non power based business. This was the right approach needed during this transition in order to fully utilize the capacities built over the initial period of 15 years. This enabled the Company to hugely diversify its customer base, service and product base with major thrust into export sector to Bangladesh and Middle East and locally to non power related business into construction. This approach helped the Company to scout for opportunities in steel sector, where in capacities were getting added in the private sector, oil and gas sector related to oil and gas transportation of cross country pipe lines, railway works including maintenance depots, workshops, roads, water projects, material handling works, undertaking turnkey solutions for rural electrification, railway electrification and infra works of technology parks. This same needed a broader approach for creating management expertise through induction and creating new organisation base in the areas of various infra works.
The next phase of growth and market expansion was the major investment cycle getting started in 2019 with the launch of National Infrastructure Pipe line (NIP) a massive boost for investment across various sectors as part of Government initiative to achieve a GDP growth of 5 trillion USD for the Country. This was also needed to improve the infrastructure base of the Country in terms of railways, roads, drinking water and supporting the growth needed in the energy sector including Oil, Gas, Power etc. The 111 Lakh Cr was major step which could help in improving the quality of citizens, but also provide avenues for segments of industry in participating the public spending to create opportunities for industrial growth.
The above initiative helped the Company in further diversifying into infrastructure execution of projects in Railways, Roads, Rural Drinking water schemes, Coal Mining, Material handling, Cross country gas pipe lines, urban water projects etc. This created avenues for market penetration in each of these segments. This also needed organisation restructuring to provide specific solutions in undertaking projects in diversified segments and the SBU concept was introduced. This has paved the way for establishing SBUs in various business segments to provide autonomous freedom to operate and work in terms of business development, operations, customer reach and enhancing growth and value addition. The same needed reworking on the organisation structure which was heavily staffed with power sector professionals to expand to non-power sector professionals. The domain expertise created is helping the Company for more focussed approach to business development and customer reach and continuously expanding the market opportunities for enhancing the order books.
Mining investments had undergone changes with major Government policies to meet the increased demand of growth of raw material needed for steel capacity enhancement of iron ore, coal capacity enhancement and other minerals. With the expertise developed in undertaking mine based and plant based material handling works along with the O&M capacity base available with the Company, it has now provided opportunities in this segment for undertaking both for the execution of material handling works on turnkey basis and also the development of coal based mining works.
The approach of the Company has always been to look for opportunities and synergising the market and execution solutions for timely delivery, enhancing growth in terms of top and bottom lines and the motto has always been the customer satisfaction, as that is the bed rock of maintaining long term relations with the valued customers. This approach has enabled the Company to create a Pan India approach of geographical expansion in most of the states and also much wider reach in pursuing opportunities and creating new business units for better execution. The other important part of this diversified plan was the need to rope in market leaders in the form of Joint Ventures and Consortium partnerships. This approach is needed to enter the market where qualification criterion had to be tied with the help of partners. This approach mainly helped the Company in achieving big in terms of getting new orders in Railways & Metros, Roads, Water Projects, Material Handling, Mining etc. This plan was also adopted for quicker penetration of export market in Middle East and Africa as the local partnership was quite useful in forging new initiatives and facilitating in competing with established local players available. Simultaneously Company has been focussing on the organisation restructuring to meet the specialized needs of various segments of work, new businesses, export market, O&M reach, infra market penetration etc.
The third decade is dedicated to consolidation and growth with expansion into new areas of Industrial Plants, Railways & Metro, Roads, Water Projects, Material Handling, Manufacturing and Mining Development & Operations.
Sectorial Business Outlook and Opportunities
A. Operation & Maintenance
Operation & Maintenance (O&M) has been playing a very important role in the growth of the Company for sustained business potential and substantially contributing both for the top and bottom lines. The other important feature in O&M business is that it does not need much capital investment and huge working capital needs as these operations are
mostly self-sustaining with better payment scheduling with customers. This is also due to the need of running the plants with proper availability to enhance power generation and also revenue generation for long term contracts. In the case of quick turnaround works of maintenance, repair, rehab, replacements, capital overhauls etc. the importance of quick turnaround time makes the customers to provide the needed payment mechanism. The major thrust had been from the private sector where in the adoptability of optimising costs for O&M with outsourcing as a model was introduced on a large scale first by the private sector in the last 15 to 20 years. This practice is more in vogue in Europe and America & it took considerable time in our Country being a practice in the last 15 years. In the Government sector this outsourcing initiative is not that widely adopted, however here also new initiatives have been taken where for the additional capacity increases Government sector also is now resorting to outsourcing model as the long term O&M contracts to reduce costs a possible approach of best practices adopted by the private sector generators. This obviously is bringing in benefits to the developers for reduced generation costs with outsourcing as a model of cost economics. This methodology is also being adopted into many other sectors like process plants, steel plants, minerals, refineries, petrochemicals etc. Power Mech has been a pioneer in this business segment with early bird catch approach and it is the largest service provider in the O&M market for Coal & Gas based plants in the Country.
Efforts also been made to enhance the capabilities of the long-term contracts for operation and maintenance in taking full control of operation of the plant, including the central control room. This has been achieved in some of the large power plants in Telangana and Odisha. This should be considered as quantum jump in enhancing the capability of the Company in entering high end operation practices to provide reliable service to the customers.
1. O&M - Power Sector
The Company is undertaking O&M jobs for 68,375 MW while operating about 42 such plants across the Country. These O&M contracts are being executed both for the main plants and balance of plant areas based on the customer requirements. The present installed base of utility segment is about 2,37,268 MW in Coal & Gas based plants in the domestic sector out of total installed base of 4,16,059 MW.
The IPP sector continues to play a major role in the business opportunities for long term contracts as this sector had taken the lead in out sourcing the long term O&M contracts in a big way. The Company has established its strong presence in 85,311 MW installed base in IPP sector in thermal & gas based power plants out of total installed base of 2,37,268 MW. The total installed base in the Government sector is about 1,51,957 MW of both Central and State sectors. There is scope to improve the presence in more plants as the Government sector also has taken steps to follow the outsourcing model for O&M.
The Company has also established its presence in undertaking long term O&M contracts in the captive segment, which can offer opportunities and has an installed base of nearly 78,000 MW and >50% of the same is installed in Metals, Minerals, Petrochemicals and Cement. Nearly 70% of the installed base is of Coal and Gas based units mainly to cater to the high energy needs of Process plants, Metal and Mineral plants. The Companys interest is mainly focused on the Minerals and Metal sectors where the unit capacities are larger of 100 MW and above which fits into the business model of the Company of doing work with medium to large capacity based units. The Company has the experience of operating the largest coal based captive power plant in India of 2,400 MW in Jharusguda, Odisha for Vedanta group for about 7 years. The Company has been successful in taking up comprehensive O&M contract for 5 years 2X600 MW with Singareni Collieries Company Limited in Telangana and for 3 years for 2x600 MW Coastal Energen Private Limited, Tuticorin. This entry in undertaking both the plants control room operation and field operation provides a quantum jump in its O&M capability which is the high end of operational capability needing expertise in control room operation.
Following the footsteps of the IPP sector in outsourcing the long term O&M contracts, the utility sector owned by the State and the Central Government have now taken the lead and with an obvious eye on bringing down the plant operation costs. In last 4 years, many such PSUs and State Utilities in the states of Telangana, Karnataka and UP have taken the lead and this initiative in the Government sector opens new opportunities for further expansion of the long term O&M business. It is heartening to note that that the largest utility player in the Country, NTPC which has an installed base of 59,474 MW in about 35 plants across the Country has taken steps in undertaking this model of long term contracts mainly for maintenance for about 7,160 MW of newly supercritical units.
The experience of entering the long term O&M contracts with the State sector has been quite encouraging with award of contracts by NTPC, KPCL, SCCL, NMDC and others. This breakthrough has enabled the Companys foray into the State sector. In the case of NTPC, they have taken a major decision to outsource the long term O&M contracts for the newly installed plants and the potential of the same is in the range of 4,000-5,000 MW based on the capacity addition planned by the NTPC. NTPC has introduced the new O&M outsourcing philosophy of sub packaging the plant maintenance outsourcing in to four to five contracts mainly to cater the new units getting commissioned and this is part of the strategy not to increase the huge manpower induction needed to maintain
these newly commissioned plants. NTPC has done the outsourcing of long term maintenance jobs at Solapur (2x660 MW), Gadarwara (2x800 MW), Lara (2x800 MW), Khargone (2x660 MW), Meja (2x660 MW) with about 7,160 MW generating capacity.
Due to the gradual increase in the share of renewable energy and also more capacities having been created in thermal, the PLF of thermal power plants is steadily coming down since the last 15 years from the peak of 77.5% to a low of 53 % in 2021 and 58.8% in 2022 and improved to 62% in 2023 with higher power demand. Once the renewables and the hydro segment of the generation reaches about 60% of the installed base by 2030 of 8,170 GW the base load stability of the coal based power plants will have to undergo flexi operation for day, night operation and multiple start and stop steps. In order to establish operating procedures Central Electricity Authority has notified that coal based power plants should be designed to operate at lower PLF levels of 40% and having sufficient ramping capacity to reach higher loads. This also calls for some modifications in the existing older plants to facilitate the adoption of flexi operation systems. This is mainly on account the need of day and night operations of coal based plants to adjust to the full use of renewable power of wind and solar power needing coal based plants to work at lower plant load factor to the level of 40%. during day time operations, when the energy mix has to be given weightage to the renewable power during day time, and this will obviously impact the performance of the machines leading to higher costs in O&M due to more wear and tear of the equipment. The shift in generation mix with renewable playing increased role can also bring in huge changes in the O&M practices of thermal power plants for reconfiguring to day/night operations including modifications needed of the plant operation for load management, frequency control, with shutdowns/ starts and more importantly ramping up and ramping down operations to raise or lower the thermal mix of generation on daily basis. Therefore these changes in the generation mix in the coming years with renewable portion going up to more than 60% would need major changes in the coal based plants O&M structure and procedures which can entail more O&M costs to the owner and leading to more opportunities for the O&M operators.
There are also new initiatives which can be taken up to enhance the O&M profile with the planned retrofit of FGD packages for estimated 1,69,000 MW of coal based power plants and there is scope to enhance the O&M presence in this new additions taking place in the coal based power plants. So far only for about 9 GW the FGD retrofits have been commissioned and with the increased FGD retrofits happening in the next few years, the O&M costs have to be increased.
Key Performance Indicators (KPI) based delivery: As the recent trend in the power sector of operating the plant on their own is changing towards KPI based contracts model, the Company has been executing various contracts under O&M service based on key performance deliverables and offering services better than other competitors in this field with lesser cost. The continual improvement in KPI on yearly basis and productivity gains have been the hallmark of its performance delivery. The important KPIs normally part of contract governance are related to plant availability, safety, maintenance practices. It is a matter of great satisfaction that the Company has achieved excellent KPIs at many large plants of 1,200 MW to 2,400 MW and has constantly exceeded the contractual targets of achieving above 90% in plant availability and 100% safety compliances. This can help in enhancing the revenue generation for the plant owners and also establishing the capabilities of the Company as a reliable service provider.
2. O & M - Non Power Sector
The Company has made its presence felt in the non-power sector mainly for Refineries, Aluminium Industries, Mineral Processing, Steel Plants etc. This is done by extending the market reach in the non power sector slowly and steadily. The expertise built over the years in the power sector work of O&M is now coming in handy to get access the non-power market both in Private and Public Sector. The major breakthroughs are with Tata Steel, JSPL, RIL, Vedanta, NMDC etc. The investments made in the non-power sector in various areas are quite huge with large capacity units relating to Oil Refining, Aluminium, Bauxite, Iron Ore Processing etc. Many of these process plants have substantial captive power capacity and the presence in one area can bring in synergy on the main process plant needs for O&M opportunities. This has clearly established that there can be more opportunities in the nonpower sector. Significant achievements in the recent times are related to long term O&M works in Jamnagar Refinery & Lanjigarh Aluminium Refinery plant of Vedanta Group.
The major initiative in entering the infrastructure business related to rural drinking water system where in Company is carrying 3,018 Cr of execution (may get revised on submission of DPRs) in about 3,018 villages in the state of UP as part of Jal Jeevan Mission to provide rural drinking water for every house hold across the Country. This is also opening up the opportunities for the O&M business on long term basis. As part of the contract structure in these works, there is also scope of doing long term O&M works for a period of 10 years once the works of the villages are completed in providing drinking water. With the Companys strides into many new areas of business like drinking water, material handling there can be opportunity to undertake annual O&M contracts at the end of the project completion and enhancing the O&M business.
3. O & M - Overseas Business
The Company has strongly established its presence in Middle East, Africa and Bangladesh for undertaking the installation business in the export sector and in the last 5 years the Company has also significantly establishing its presence in the O&M space in the Middle East and North Africa. A beginning was made eyeing the huge installed base of about 300 GW in MENA Region and more than 157 GW in the GCC areas. The initial major opportunities were related to man power supply for some of the shutdown jobs followed by overhauls, repair, capital overhauls and others. The focus is to expand the Country wise profile in Middle East as first stage for similar works and then look for major opportunities for long term contracts. Even the short term maintenance, shutdown and manpower services contracts for O&M is boosting the O&M business in the Middle East Region. The Company will focus to work on long term O&M contracts for a period of three to five years. Significant growth is expected in the O&M business in Middle East and Africa regions and in the current year the order booking is expected to go up. With an installed base of 157 GW in the GCC area alone and long term shutdown contracts in the hydrocarbon sectors in the GCC area the O&M business is getting fully established.
The Dangote, Nigeria captive power plant O&M contract is already under implementation and it is expected that the presence of Company in the largest oil refinery in Africa will be long lasting. Recently a major breakthrough has been achieved in the award of long term maintenance job for one of the packages of the under commissioning Maitree 2x660 MW project in Bangladesh. This is part of establishing O&M credentials in Bangladesh power market. Bangladesh has plans to augment its power generation capacity to 40,000 MW by end of the decade. With the presence established in Nigeria, Company is also exploring the opportunities in other countries like Ghana, Uganda, Tanzania etc. in addition to O&M opportunities in MENA & Bangladesh.
B) Industrial Construction
1) Erection, Testing and Commissioning (ETC) Business
The ETC business had been backbone of the Companys operations with the works related to Coal and Gas based power plants and this was further expanded into other sectors of Oil, Gas, Steel, Material Handling and Retrofit packages of fitting FGD systems as part of emission control. The optimum capacity of Coal based plants to be maintained in the next 10 years has been formulated by Central Electricity Authority (CEA) taking into account the various scenarios of renewable power getting more prominence. This also has to factor the capacity of the thermal units to be retired on account of its ageing as well as emission considerations. Based on these studies it is expected that the Coal based installed capacity by 2032 is planned at 2,59,643 MW without much of additional Gas based plants. However there can be substantial capacity addition in large sized Hydro and Pumped storage facilities. The recent focus on emission control had enabled the coal based power plants with more investments by way of FGD retrofits for about 169 GW with an ongoing investments of nearly of 1.2 to 1.3 Lakh Cr. This has created with new opportunity for the next 3 to 4 years for the power plant manufacturers and also service providers.
The global mandate and Indias commitment to ongoing process of reduction in greenhouse gases has set very clear goals on the fossil fuel based power generation including both Coal and Gas based plants. The ongoing implementation of coal based plants is about 26,900 MW including all those projects which are cleared for implementation. There can be scope for many of the opportunities in these projects under implementation. Taking into the peak demand of power needs by 2032, CEA also has made recommendations for the additional capacity addition of coal based plants of about 19,100 MW to 27,100 MW for implementation beyond 2027. It is expected that the new additional capacity addition will be mostly done by the PSU and State utilities and there are many projects already identified for this purpose. The study undertaken by CEA, the present demand of peak power of 210 GW can go up to 277GW by 2026-27 and 366 GW by 2031-32.The share of the coal based plants is estimated to be about 2,59,643 MW by 2032, the total installed base of all categories can go up to 9,00,422 MW.
It is observed that the total capacity addition of coal based plants from 2017 to 2022 was only 27,643 MW with average addition of only 5,528 MW/year and the planned addition from 2022 to 2027 is about 25,580 MW with average addition of 5,116 MW/year. It is the new norm that we have to live with the continued down ward investments happening in the installation of fossil based power plants. Based on this reality the Company had already started the initiative of diversifying into non-power sector for the last 10 years.
2. Flue Gas Desulphurisation (FGD) and Selective Catalytic Reagent (SCR)
The CEA has identified 1,69,000 MW of existing coal based plants of 448 units out of 2,09,100 MW of installed base of 593 units needing FGD retrofitting for reduction of sulphur emissions. NTPC along with its JV utilities as the largest utility in the Country has taken the lead role in the implementation of FGD retrofitting. Taking into account the NTPC share of FGD award of contracts, the total contracts awarded as on date is at 1,04,000 MW of FGD contracts have been awarded and 9,280 MW of FGD retrofit works have been completed. The balance to be awarded is about 65,000 MW. The major share of the award yet to be done is with the private players & State Utilities.
There had been lag in the implementation of FGD systems for the power plants identified mainly due to financial constraints and also tariff related issues and this has led to continuous shifting of the cut off dates for full implementation and getting shifted from 2022 to 2024 and now to 2027. With the revised deadlines and the need for implementation of the FGD systems the IPP sector also geared up their plans for implementing FGD at their power plants. Adani Power, JP ventures, JSW, JSPL, Rattan Power, Tata Power and many other private players having installed capacity of around 76,000 MW. The lead EPC players in the fray for these works are BHEL, GE, L&T, MHPS, ISGEC, Thermax and TPL.
It may be noted that Power Mech was involved in the execution of first 500 MW FGD retrofit work undertaken in the Country at 1x500 MW Vindhyachal Project of NTPC for GE. Presently, only retrofitting of FGDs to the existing as well as upcoming power plants is being focused. But in case of SCR, retrofitting for existing power plants not being emphasised due to various constraints such as layout restrictions, longer duration shutdown for integration etc. However for new and upcoming units, SCR is configured with boiler packages.
The total investment expected for retrofitting 1,69,000 MW is around 1.25 Lakh Cr. The Company is aggressively pursuing many new opportunities in the FGD segment for direct participation on EPC route with many IPPs like Adani Power, CESC etc. The major order to be executed is for Adani Power of 6,163 Cr on a complete EPC mode for its plants located at Mundra, Tiroda, Kawai and Udupi. Another 1,320 MW of FGD works mainly related to civil works are under execution for North Chennai and Kahalgaon thermal plants. The Company is making efforts for the participation of more FGD tenders with partnership approach on technology tie ups.
3. Oil and Gas
As part of NIP forecast and plans, the total investments planned in the oil and gas segment during the period 2020 till 2025 is around 1,95,000 Cr in all its segments and these new investments should bring new opportunities for various industries including construction business which is the focus of the Company. Gas pipeline infrastructure in the Country stood at 19,998 kms in FY 22 and 15,369 kms of pipeline works are under construction. The Government has allowed 100 % Foreign Direct Investment (FDI) in many segments of the sector including natural gas, petroleum products and refineries among others.
The major expansion of the gas grid involves in establishing the Eastern Gas grid and the North Eastern Gas grid involving about 1,656 kms of pipe line works linking the states of Assam, Mizoram, Manipur, Arunachal Pradesh, Tripura, Nagaland, Meghalaya & Sikkim. Some important pipelines under construction include Srikakulam - Angul 690 kms, Mumbai - Nagpur - Jharsuguda 1,755 kms, Kakinada - Vijayawada - Nellore 667 kms. As per the NIP, major portion of the investments are related to oil and gas pipe lines of 1,04,000 Cr and various storage facilities of 30,000 Cr. There are also opportunities in undertaking iron ore based slurry pipe lines similar to the cross country oil and gas pipe lines.
New LNG terminals at advanced stage of commissioning are Floating Storage & Regasification Units [FRSU] at Jaigarh, Maharashtra of 6 MMTPA capacity and at Jafrabad, Gujarat, of 5 MMTPA. The other LNG projects under construction at development stage are: Dhamra, Odisha of 5 MMTPA, expandable to 10 MMTPA; Chhara, Gujarat; Karaikal LNG, Tamil Nadu; and Kakinada LNG, Andhra Pradesh. In India, there are about 4,433 CNG stations now and are expected to go up to 8,000 nos in the next 2 years. A total of 228 Gas (Geographical Areas) are now covered by City Gas distribution (CGD) at the end of the 10 th round of the bidding process. With the expansion of CGD network, 11th round of bidding already initiated 65 more have been covered and the total to be covered will go up to 293 for Gas and the CGD network augmentation is also propelling the capacity increase in cross country pipe line networks for LNG transportation.
India is yet to reach the peak of oil refining capacity in view of the continued demand side pressures even though there is lot of emphasis on renewable energy investments. The installed base of refining capacity is expected to expand from 252 MMT and to 320 MMT by 2030-31 by way of brown field & green field refineries and further expand up to 450 MT by 2040. The construction scope of the business is expected to be in the range of 30- 40 Billion per year. India is the second largest refiner in Asia and 73% refining capacity is with oil PSUs and 27% in private sector with RIL and Essar. It is to be noted that the Company was involved in the J3 stage expansion works of RIL and forayed into the petrochemical business.
The Company has been successful in taking up the cross country pipe line jobs in the last four years involving about 550 kms of cross country pipe laying for 4 major projects. Work of Ennore-Manali and of Ramanathapuram-Tuticorin pipe line are completed and the other two major works under execution are Koyali-Ahemednagar pipeline with a stretch of 320 kms and Mundra-Kandla pipe line stretch of 91 kms . So far about 511 kms of physical construction of pipe lines have been done by the Company after the advent and diversification into this segment in the last five years. The Mudra-Kandla pipe line is meant for LNG transportation and being executed for Adani Group and rest of
the pipe line projects are from IOCL. Both these projects are expected to be completed in the current year, and the valuable experience gained in all these four projects should enable the Company to tap from the huge expansions taking place in the national gas grid investments.
4) Steel
After Covid-19 there had seen lot impact on the increase in steel prices to the extent of 60% to 70% affecting the commodity market and this huge increase in steel price drastically affected the construction works for some time. The Companys interest in this segment is both as an end user of finished steel for infrastructure and steel structural related works and also the expansion of steel industry can bring in lot of new opportunities. The demand for steel has picked up for use in the construction industry and other user industries. Stability in steel prices is an essential need for sustained development and also while undertaking projects. India having growth trajectory post COVID-19 and registering highest GDP growth among large economies, offers huge opportunities for the growth of steel industry. India is the second largest producer of primary steel next to China with an installed capacity of 158 MT with crude steel production of about 125 MT. With increased demand for steel, it is obvious for adding further capacity expansion in the brown field and green field plant expansion. With the present installed base of 158mt to be nearly doubled by end of the decade to about 300mt and the total investments expected is about $158 billion across all the steel majors both in Private Sector and Public Sector. Private sector having a larger share of nearly 80% of installed capacity is expected to play major role in the doubling of the steel capacity in the Country. This can also bring in more investments in the expansion of existing steel plant capacities. During the year, SAIL, NMDC, RINL and KIOCL have all registered their highest production. With the GDP growth to be sustained in the coming years demand for steel is expected to increase and the need to add huge capacities for the existing steel installed capacities keeping in view the long term needs in the next 8 to 10 years. The ongoing NIP investments of 111 Lakh Cr is also playing a major role in the steel demand in the market with huge investments in infra sector and construction sectors apart from the capital investments expected across the various industry segments. The demand for steel increase is mainly dependent in the investments in Urban Infra, Rural development, Roads and High way construction and Railways. The estimate crude steel production by 30-31 is 300 MT with crude steel demand of 255 MT and finished steel production of 230 MT, and the per capita consumption is 158 kg.
Most of the steel majors are planning expansion of capacities thro brown field or green field routes. SAIL to expand capacity from 23 MT to 50 MT in their existing plants, JSW from 27 MT to 50 MT, Arecelor Mittal by 6 MT at Hazira and by two new green field plants of capacity of 24 MT at Kendrapara and 7 MT at Jagatsinghpur in Odisa.
The Company has been quite successful in its pursuit of diversification into steel plant construction opportunities as a policy followed in other segments. The first success was in entering into the erection works of equipment and structural steel at JSPL Angul for its 3 MTPA expansion. This had enabled the Company to foray into other opportunities which were coming up. Later it successfully executed major works for the expansion of JSW Dolvi works and there are ongoing works in the expansion of JSW Vijayanagar plant.
The experience being gained by working in JSPL and JSW can help the Company to get qualified for the new projects both in the brown field expansion and green field expansion. Like in the case of power plants there is scope to do various packages related to structural, equipment erection, civil works and piping works.
5) Minerals, Coal and Material Handling
India is a leading producer of Iron Ore, Coal, Bauxite and in the case of metals it is Aluminium, Steel, Lead and Zinc. India has the 3rd largest reserves in coal with deposits of 361 billion MT in the World. The Lignite reserves is estimated at 44 billion tons. It is expected to achieve coal production of 900 MT in the preceding year with CIL contributing about 700 MT. India is also the 2nd largest producer of steel at present. The iron ore reserves are around 22 billion ton. There are also many other developments taking place in the coal sector related to increasing capacity to produce coking coal. The contribution of coal based plants continue to play a major role in the power generation in the Country with installed base of 211GW out 416GW and the increased demand for more electricity in the coming years, there is more scope for increasing the capacity of coal production in the Country. It is also a fact that only about 30% of mine side of coal mining has mechanised coal handling and loading facility and there is lot of scope to increase the mechanisation of coal handling facilities at the mine side offering lot of opportunities in material handling jobs. In the case of Iron ore there can be opportunities both in the handling part of ore transportation at the mine side operations and also in the steel plant related to receipt and handling of the ore. Ore beneficiation is also an important need in improving the quality of ore to provide better recovery during conversion to steel output and the Country is catching up with investments happening to improve the beneficiation of iron ore and other minerals. NMDC with an annual production of 40mt of Iron ore is planning many Iron ore beneficiation plants at several of its mines in Chattisgarh & Karnataka.
With the foray into this new segment the Company is acquiring skills in the project implementation of material handling contracts, with expertise in undertaking both engineering and project related execution in civil, structural and mechanical works to provide total project solution as a single point solution provided at site level. The ongoing works at Kurmitar for the 12 MTPA iron ore handling and the Coal handling project for the 2x660 MW at Khurja in association with thyssenkrupp Industries India Ltd (TKII) new project management skills to work with technology partners and equipment suppliers. The nature of engineering is mainly related to field of civil and structural works matching with engineering inputs tied up with the technology partners and equipment suppliers. The opportunities related to minerals and coal are mainly linked with the material handling facilities, and the value addition of working on this type of contracts is also synergising the technology part of the process needs of handling along with the engineering, procurement and construction. With the huge opportunities in the market in the areas of coal handling both at mine side and the plant side, iron ore handling, port side material handling operations the scope for market penetration is quite substantial.
Iron ore has been identified as another important opportunity for both material handling and mineral processing and beneficiation to enhance the quality of iron before being fed to the steel plant and this has paved the way for working with leading technology players like thyssenkrupp(TKII) of Pune and FL Smidth of Chennai. The various works of material handling related to Coal and Iron ore handling facilities shall enable the Company to establish its credentials for the market available for Coal handling and Iron ore handling at mine side as well as plant side.
C) Infrastructure Construction
Power Mech has now transformed into a diversified Company both geographically with a pan Indian presence and also outside. During the last few years concerted efforts of moving away from power sector business when the down trend started with less investments in this sector has greatly helped the Company in not only facing the head winds coal based plants installation business coming down, but also has been continuously building up capacities and entering into new areas of business. The huge investments plans envisaged by the Government as part of the NIP with 111 Lakh Cr started in 2019 was an additional opportunity in making presence felt in the infra segment of construction works. This was also a result of a strong civil organisation created to take up the civil works. This experience has been quite useful for infrastructure civil construction in non-power sectors and this has also enabled the Company in the qualification requirements needed for non-power infra projects. The Company is now an established player in undertaking various types of civil works across different sectors. This was also possible with tie ups made with qualified parties to enter into the huge infra business opportunity available and this policy in many major contracts has helped the Company to forge strong relationships with the partners.
As it is obvious based on the recent trends of Government approach to strengthen the infrastructure base as part of huge development initiative, the Company has taken the right initiative in aligning the business model with the huge investments as part of NIP programme of the Government. The experience gained in the power sector and being further diversified into non power sector of the civil business has boosted the civil share of the business in a hugely diversified service profile with various segments encompassing Industrial Plants, Railways & Metro, Roads, Water Projects etc.
The segment wise analysis of the business opportunities are as under:
1) Civil Works - Power Sector
Having fully established its presence in the power sector civil works, the Company has graduated as a major service provided for undertaking the entire range of civil works across various areas of work for a coal based project. This was fully demonstrated in completing the entire main plant and balance of plant civil work for many power plants located at Vizag, Raichur, Suratgarh, Kothagudam, Namrup, North Chennai, Unchahar etc. involving about 6,580 MW of installed base. With cumulative experience of having done about 22.9 lakhs m3 concreting work, the Companys credentials to deliver in undertaking power sector civil works is fully established in undertaking the entire spectrum of the civil works related to boiler, turbine area, chimney and many of the balance of plant packages related to coal handling, ash handling and others. It is also important to stress that the Company is one of the few in the Country who can provide composite expertise for site construction both on civil and mechanical side related to main plant equipment and also balance of plant equipment. The combination of civil works with mechanical can also optimize the site operation costs both for competition and also deriving better margins. There can be better synergy in operations and also smoother interface input provision for undertaking the structural and mechanical works with civil inputs provided by the same set up at site. This expertise is not matched by many competitors across the Country. This is also one of the major factors for better execution of project deliverables.
Two major initiatives in undertaking such composite works are now under execution at Maitree in Bangladesh of 2x660 MW of civil work and the works for 5x800 MW mega power project at Yadadri in Telangana. The Company is presently executing the main plant civil works in about 10,920 MW in the Country at Khurja 2x660 MW, Bhusawal
1x660 MW, North Karanapura 3x660 MW, North Chennai 1x800 MW, Udangudi 2x660 MW and Khalagaon 4x210 MW.
The opportunities in the power sector civil works flows from the overall capacity addition being planned for the coal based plants. New opportunities are expected with the projects under implementation for 2x660 MW Talcher 2x800 MW expansion at Lara, 1x800 MW expansion at Singreni, 3x800 MW green field plant at Talabira in Odisha, 1x800 MW Singruli. This can add up to about 5,600 MW and this is part of the overall addition of 25,850 MW from 2022-27 as per the National Electricity Plan document.
2) Railways and Metro
Railways are at the forefront of development economics for new investments and as per NIP plan the total allocation of 111 Lakh Cr the Railway portion allocation is about 13.62 Lakh Cr. The major thrust related to civil works is also in station redevelopment works involving about 450 stations across the Country. In the case of Metro Rail networks across many cities the planned expansion of the lines from about 800kms to more than double up the same offer huge opportunities. This is being done to bring out qualitative change in the development of railway infrastructure across all segments of railway network related to gauge conversions, electrification, investment in high speed corridors, station redevelopment programmes, maintenance depots development and establishing facilities for various maintenance workshops across different railway zones are offering huge opportunities. The railways has been focussing network expansion for the past few years. The current year Union budget has allocated 2.6 Lakh Cr as capex allocation for capacity augmentation. The projects in the coming 3 to 4 years include 7,000kms of new lines with investment of 70,000 Cr doubling and tripling of line expansion of 8,000kms with an investment of 80,000 Cr. Railways have also announced new high speed rail corridor in the medium to long term with the initiation of feasibility studies. In the near term the emphasis on the development of Semi-High speed corridor projects which needs an investment of 25,000 Cr. The other new initiative is the Regional Rapid Transit System (RRTS) including civil packages with 4 corridors to be developed by the National Capital Region Transport Corporation (NCRTC).
The intercity segment is the new area of business opportunity in railway investments apart from the Dedicated Freight Corridors and such intercity segment developments are coming up in Delhi-Alwar, Delhi-Panipat. Railway has announced the development of high speed corridors to develop seven more such projects and studies have been undertaken to work on the feasibility of Semi High Speed Corridor. The early completion of Eastern and Western Freight corridors will lead to development of 3 freight corridors across East Coast, East-West, and North- South and the expected investment in these projects is estimated to be around 60,000 Cr.
The future of rail traffic is on high speed travel with travel speeds varying from 135 kmph to 180 kmph and also introduction of bullet trains. The plan is also augment the freight traffic speed to 50 kms / hour to enable faster goods travel and reduce logistic costs.
The growth of Metro Rail got a boost after 2002 with investments in Delhi Metro network and with the ongoing projects it should expand to 27 cities and 1,700 kms by 2025 including about 800kms completed for about 18 cities. The revised plan is to expand the Metro Rail and Light Rail way systems to 3,335kms across 40 cites spreading up to even tier 3 cities. The nature of Metro urban transportation comes in different forms of Metro Rail for Large and Medium cities at 280 Cr to 325 Cr per km, Regional Rapid Transit System (RRTS) linking two important cities and Metro lines for smaller cities and towns with cost per km at 120 Cr-140 Cr. The opportunities for Metro Rail sheds for maintenance purpose can be about 350 Cr to 1,000 Cr based on the capacity of the depot to be planned. In India the major portion of Metro network is above ground level and with limited construction in underground structures related to tunnels and underground stations. The huge investments taking place also throws up opportunities for maintenance depots, workshops apart from the over ground metro structures, stations, underground tunnelling works and underground station works.
The entry into railway infra works started in 2016 with the completion of 37 kms on Gudiwada-Machilipatnam with track doubling. Since 2016 the Company has acquired expertise in undertaking various railway works of permanent way civil works, construction of bridges, way linking, signalling, telecommunications, overhead electrification, construction of staff quarters, construction of station buildings, platforms and also construction of pre engineering buildings along with construction of railway maintenance work shops.
Further diversification into the Metro side construction work has brought out the synergy in the operations of undertaking both the Railway and Metro works with specialized skills in Civil works, PEB construction, Work shop & Maintenance shop construction, new railway line laying works, along with stations works etc. The order received in 2022 from BMRCL for the new construction of depot cum workshop at Challaghatla, Bangalore of contract value of 449.41 Cr has been a significant breakthrough in broad basing the opportunities both the Railways and Metro rail
networks. At present the Company is implementing about 8 projects across the Country. The continuous focus on the Railways & Metro works expansion in the next 5 to 10 years should enable the Company to make its presence felt in this urban transport segment offering lot of opportunities and scale up the presence in the civil works.
3. Roads & High ways
The landscape of the Country for high way travel is undergoing major changes with new network of National High ways & Express Ways taking shape on a fast track basis across all the States. NHAI as the nodal agency for driving the roads and high ways construction across the Country for building National High ways, Express ways, Multimodal Logistic Parks(MMLPs). National Highway Development Programme (NHDP) along with Bharatmala Pariyojana and Sagarmala schemes under NHAI have been driving the large scale development of road connectivity across the Country. As part of the NIP plan the total investment planned is around 20.33 Lakh Cr forming 18% of NIP plan with largest allocation for road connectivity. There had been tremendous strides made in the last 9 years since 2014 in increasing the footprint of National High ways and also State Highways and a scheme Bharatmala Pariyojana Scheme. The National Highways have a total length of 1,44,995 kms and the development of the same rests with Government of India. The length of the State Highways stands at 1,71,039 kms apart from the rural and other roads around 60,59,813 kms. The allocation in the Union Budget for 22-23 has gone up to 1,99,108 Cr and this has been further increased to 2.7 Lakh Cr in the current year. The daily road construction is planned to be increased from 34kms /day to 40 kms/day in the current year.
Road network expansion is taking place at breakneck speed and there are opportunities available for choosing the type of project and the suitability of the same in executing the same by the EPC contractors and also as investment for long term returns. The various other works planned under NHAI is the creation of multimodal logistic parks of 35 nos under MMLP scheme with an investment of 50,000 Cr at strategic locations across the Country and the main purpose is to create seamless freight movement from point to point across multiple modes in facilitating reduction of imports and increase in exports. These Parks enable the shift of goods from point to point to a hub and spoke model in logistic sector to bring down logistic cost as part of export and import business. The implementation of these parks to be done on the basis of Design, Built, Finance, Operate and Transfer basis (DBFOT).There is a plan to build Way Side Amenities every 40kms along National Highway and planned for development of about 600 nos by 2025.
The Company has made entry into the road sector after lot of deliberations and careful thinking looking at the huge opportunities being made available. As such works being under taken on the basis of geographical reach, feasibility of execution and managing all the risks. In the year 20-21, the Company bagged two road project orders for Hassan- Channarayanapatna project of 555 Cr being implemented by NHAI in Karnataka, involving NH-75 by pass road and connected roads of about 77.20 kms & widening and up gradation to two lane from Aizawl - Tuipang Section about 39 km of NH-54 in Mizoram implemented by NHIDC, contract value of 446 Cr. These projects have been considered under the new EPC contracting mode of NHAI. Also in the year 2021-22 a major EPC order was procured from Adani group for the Khammam - Kodad project of 35 kms of 645 Cr. The total road projects under implementation is about 147 kms involving 1,696 Cr of work. This diversification measure will positively supplement the growth of the Company and also contribute to the synergy of the entire range of civil work spread across various segments. The Company is pursuing such projects in pipe line on a very selective approach.
4) Water Distribution & Waste Water Treatment
One of the key areas of public utility service lacking since independence was the lack of potable drinking water reach to the majority of rural households. It was one of the least addressed public distribution systems as an essential need for the every house hold. Jal Jeevan Mission(JJM) was a new flagship programme to enable the provision of drinking water to every house holds not connected in the rural sector and it was launched in 2019. The total budget allocation is of 3.6 Lakh Cr which is part of NIP programme for infrastructure development.
National Rural Drinking Water Programme (NRDWP) coming now under Jal Jeevan Mission (JJM) to provide Functional Household Tap Connection (FHTC) of 55 litres/day to every rural household i.e., Har Ghar Nal Se Jal (HGNSJ) by 2024, involving source development, Water Treatment Plants (WTP), Storage Reservoirs and Distribution Pipelines and distribution to every house hold in the rural segment.
JJM intends to "Make Water Everyones Business" by involving all stake holders and turning it into a "Jan Andolan" a peoples movement. JJM is a decentralized demand driven and community-managed programme that aims to instil "Sense of Ownership" among the local community with Gram Panchayat being critical and central for the success of this scheme.
Total households at the village level in the Country are 19.24 Cr and as on July 2023, about 12.73Cr households have been covered under this mission constituting 66% of total village population in the Country. This is quantum jump in
the last 4 years from 3.24 Cr village households. Sensing the huge opportunity in this segment, the Company rightly made an entry in this area of business in a big way and so far based on both the Phase II and Phase III plans launched by the Government of India has received orders for about 3,018 villages in UP State. The nature of these contracts are based on the item rates decided at the time of award of contract and later once the village wise DPRs are frozen, the contract estimates are updated based on the finalized scope for each village which will be implemented in the next 3 years. Once all the cover agreements are completed the estimated value of work can further go up. The JJM works under progress are significantly contributing for the revenue growth of the Company.
The other salient feature of this segment of business is that all the contracts are also tied with long term O&M responsibility entrusted to the successful bidders and it is estimated that up to 3% of project approved cost. Based on the completion of the work it is expected that additional revenue as part of O&M work is expected from next year. The Company has developed Project Management and Construction Management skills and this is being further augmented by enhancing engineering tie ups, strengthening of the supply chain side of project support and a highly decentralized approach of implementing the works at the village level. Various projects are targeted in water supply sector in states of Madhya Pradesh, Rajasthan, Karnataka and Odisha.
The Government of India has launched the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) with the aim of providing basic civic amenities like water supply, wastewater management projects, covering 500 cities that includes all cities and towns with a population of over one lakh with notified municipalities worth at 50,000 Cr. The Company is already executing Sewage Treatment Plants and Sewage Networks under AMRUT at Gudivada (Andhra Pradesh) & Palwal (under Palwal Municipal Corporation, Haryana) which are scheduled to be completed shortly. Apart from the Sewerage Treatment Plants being developed, the Company is also planning to bag more Water Treatment Plants & Sewerage Network Projects across the nation under AMRUT 2.0.
India has the largest arable land and in order to optimize use of water resources in agriculture, many piped water supply schemes with sprinkler irrigation methods with automated solar controls are also being planned by GOI under Pradhan Mantri Krishi Sinchai Yojna (PMKSY) - Har Khet Ko Pani in various States including Gujarat, Madhya Pradesh and Odisha. The Company is also aiming to bag such projects in the States of Maharashtra, Madhya Pradesh, Karnataka & Gujarat to grow in water sector.
D. Mine Development & Operation (MDO)
For the energy needs of the Country coal has been an important fuel input mainly related to power generation and allied industries related to captive power, steel, cement and many industrial applications. There is also the need of steel and cement production capacities to be enhanced to meet the growing demands in industry, manufacturing and infrastructure development. There is also the need to cut down on the import content of the coking coal for the increased demands of steel industry which has planned to double the production of steel with an installed capacity of 300mt by 2030-31.
The importance of coal cannot be overlooked in the next 25 to 30 years. India s commitment for carbon neutral goal is by 2070 looking into the huge coal dependency of the Country and with coal based thermal plants with nearly 51% installed capacity(211GW) out of total installed base of 416GW. Our Country continue to be heavily dependent on coal for energy sustenance both in power generation and also user industries. The present production of coal of nearly 900 MTPA is expected to go up to 1,511 MTPA by the year 2030. For meeting domestic energy needs in power and other sectors, substantial imports of coal being done each year. With present approach of Atmanirbharata approach, it is planned for progressively bringing down the coal needs for the coking coal. The long term approach is to reduce the dependency on coal for power generation.
With coal reserves of 361 BT which is mostly located in the mineral rich states of Jharkhand, Odisha, Chattisgarh, West Bengal, MP, Telengana and Maharastra the coking coal reserves are about 35BT and the non coking coal reserves are 326 BT. The Lignite reserves in the States of TN, Gujarat, Rajasthan is estimated at 46BT.
As per revised policy, the Coal Mines Nationalization Act was amended to allow participation of other sectors in coal mining. As a parallel action, the Government had allowed other Government Companies / PSUs as well as interested private players to participate and acquire new coal blocks for supplying coal for their captive and specified end-uses such as Power, Cement, Iron, Steel and Coal Washing. Several Public Sector Power Utilities, State Government Mining Undertakings and Power Utilities entered domestic coal mining arena and got coal blocks allotted to them through Government Dispensation Route. Also, several blocks were allotted to private players for their respective captive use under Captive Dispensation Route. Since most of the aforementioned Public Sector Undertakings did not possess the requisite coal mining experience and expertise, they resorted to public private partnership model of Mine Development and Operation (MDO).
Coal Ministry also has taken auctioning of discontinued coking coalmine out of 30 such mines and action has been taken to auction 10 such mines to Private sector with annual mining capacity of 22.5mt. The expected investments in about 15 green field mining projects is estimated of 20,600 Cr which can enhance the annual coal production to about 169mt. Already CIL has issued Letters of Acceptance in the case of 7 Coal projects with a total mining capacity of 100mt. CILs targeted production of coal is 1,310mt by 2025 and 1500mt by 2030. There is going to be lot of emphasis in enhancing the capacity of production of coal both for Non Coking and Coking coal in the coming years. This should provide huge opportunities for MDOs to be developed by the Private sector and also the downstream capital investments opportunities for the mechanization of coal handling facilities opening up opportunities for CHP engineering companies and also service providers for execution.
MDO is a concept wherein the Mine Owner sub-contracts the Development and Operation of the Mine to a third party as a Service Contract i.e., the Mine Owner retains the Right/Ownership on the mineral produced from the mine and the MDO acts as a Service Provider to the Mine Owner.
On 24th September 2014, the Supreme Court cancelled the allocation of 214 out of 218 coal blocks allocated by the Central Government, between 1993 and 2010, ruling that the allocations were arbitrary, illegal and amounted to unfair distribution of national wealth. Subsequently, the Government started the process of reallocation of the cancelled coal blocks under the newly promulgated Coal Mines Special Provisions Act. However, the MDO concept still remains the preferred option for the Public Sector Undertakings to Develop and Operationalize their Coal (Mineral) blocks. In addition, so far 64 Coal mines have been auctioned in the light of post Supreme Court judgement. The key focus is also to localize the coking coal content of the coal production to meet the increasing demands of iron and steel industry.
Power Utilities such as NTPC, Mahagenco, GSECL, RUVNL, DVC, WBPDCL, PSPCL etc. and State Mining Corporation such as APMDC, GMDC, etc. have been awarded more than 100 MTPA of production capacity under the MDO route. Today the concept of MDO has become so popular that State owned Coal Mining Behemoth - Coal India Limited and Singareni Collieries Company Limited and Private Sector Mining Company Vedanta Limited are also developing their Coal (Mineral) assets through MDO. Coal India has identified multiple opencast mines with a target capacity of 169 MTPA and three underground ones of 6 MTPA to be developed through MDO.
Power Mech with its huge industry service expertise in plant installation, operation and maintenance of power plants and industrial plants of having worked in many segments particularly related to material, coal handling and iron ore handling projects both in power and non-power sectors is ideally suited to handle both the opportunities in this expanding coal production plans of the Country in the coming years. The MDO concept of business was considered as the right business approach to expand the service and investment base in synergizing both the project implementation and O&M capabilities in undertaking the capital investment needed for the MDO based contracts.
It was evaluated that from business perspective and also assured demand of coal supply for the coking coal needs, it would be better to try the mine development opportunities related to the coking coal, as there will be assured demand for the coking coal mainly from the steel plants. It is to be noted that Company had established good expertise in the installation of material handling facilities as part of the installation business and also in O&M operations of such material handling plants which are needed for the mechanised working of the mines once developed. However looking into the nature of mining which also involves huge amount of over burden work related to removal of earth during mining, it was essential to forge a strong partnership with companies having such expertise. Accordingly a joint venture approach was adopted who have established substantial expertise in the overburden removal operations related to coal mining.
In this regard the MDO contract has been awarded by Central Coal Fields Ltd (CCL) a subsidiary of Coal India Ltd (CIL) for the "Kotre Basantpur Pachmo Ramgarh and Bokaro district open cast mining project in the state of Jharkhand in year 2021 with a peak mining capacity of 5mtpa. Recently another MDO contract was awarded by Steel Authority of India Ltd (SAIL) for Tasra MDO project with a capacity of 4mtpa. Both these mines are Open Cast Mines (OCPs) and both these MDO projects are meant for augmentation of coking coal capacity in the Country.
Kotre Basantpur MDO Project (KBP) project aggregating contract value of 9,294 Cr over the contract period has been awarded to the consortium of Power Mech and AMR India wherein Power Mech is the consortium leader with 74% equity and AMR India is holding balance 26% equity. A special purpose vehicle (SPV) - M/s. KBP Mining Private Limited has been formed to undertake the project. AMR India Ltd, a two decades old Company has been engaged in contract mining involving operations like removal of overburden, mining of coal/lignite etc. The SPV will have material handling expertise of Power Mech in project development and the technical expertise of AMR India in the field of greenfield mining project development particularly in over burden removals. The MDO contract will primarily comprise of mine infrastructure development, removal of overburden and extraction of coal, processing, crushing and transportation of coal up to washery of CCL, carrying out R&R activities and any other activities incidental for mining as per the project document at Kotre Basantpur Pachmo OCP located in Ramgarh and Bokaro Districts, Jharkhand. The project has total coal extraction
of approximately 105 million MT with an annual capacity of 5 million MT and over burden removal during the project period is over 539 MBCM. The concession period is 25 years including two years of development period with an option of extending for another 10 years with the consent of both the parties (with this the total contract period will extend up to 35 years).
Tasra MDO Project: This project has been awarded as Mine Development & Operation (MDO), located in Jharia Coal Fields, Dhanbad, Jharkhand, by Steel Authority of India Ltd (SAIL) for an estimated contract value of 30,438 Cr over the contract period of 28 years including development period of 2 years. The MDO contract will primarily comprise of mine infrastructure development, removal of overburden and extraction of coking coal, crushing, transportation, setting up coal washery of 3.5 MTPA capacity, supply of steel grade coking coal to SAIL, carrying out R&R activities and other activities incidental to mining as per the project document. The project has total coal extraction reserves of 96.78 MT with an annual capacity of 4 MTPA and over burden removal during the project period is over 535.29 MBCM.
The project has been awarded to a consortium of Power Mech and PC Patel Infra, wherein Power Mech is the consortium leader with 74% equity stake and PC Patel Infra will hold 26% stake. A special purpose vehicle (SPV) Kalyaneswari Tasra Mining Private Ltd is formed to execute the project. PC Patel has been in the mining sector for over a couple of decades and has rich experience in handling different kinds of mining contracts. This mine has all statutory approvals in place and it is a ready to mine project.
Both the projects will further strengthen the existing robust order book and enable the Company to diversify its order book which is in line with its strategy to have an optimum mix between power and non-power segments. With the revenue coming in from both the MDO Projects along with the existing operation & maintenance (O&M) business, Power Mech expects to witness sustainable growth both in top and bottom lines in the future for a longer period.
India is majorly dependent on costly import for meeting its coking coal requirement, KBP and Tasra both are important projects to our nation to meet the growing demand of coking coal. KBP and Tasra MDOs together will generate 9 MTPA when the peak capacities of the respective mines are achieved and the coking coal extracted through these mines will definitely be an inexpensive alternative to the coking coal which the Country is currently importing.
These projects are strategic step in forward integration in the Companys activities, utilizing the technical know-how along with project implementation capability. AMR & PC Patels technical expertise along with Power Mech core capabilities in the field of EPC contracts, plant installation, civil & structural works, material handling, infrastructure construction and project management coupled with operation & maintenance expertise comes in handy. Power Mech has already established substantial in - house capability in executing large capacity material handling contracts and this experience will greatly help in the overall development of the project.
Foreseeing the growth, expansion and diversification, management has started identifying relevant talent and drawing them from reputed organizations. The Company has equipped itself in meeting the demands in executing mega and complex projects smoothly, keeping quality, safety and timeline. The payments are well secured based on the strong balance sheets of the owner companies of CIL and SAIL. Moreover the implementation expertise including the O&M experience of working in similar material handling plants in various power plants and industrial plants can have huge benefits during project implementation and during its operations for the entire life of the plant.
Power Mech will continue to seek MDO and mining opportunities in future to secure long-term contracts. As a strategy, Power Mech would specifically target coking coal blocks under MDO route. The aim of the Company is to enhance capacity of MDO operations to about 15 MTPA over next 10 years and this should enable the Company to create long term assets over 25 to 30 years for sustained revenue generation and profitability.
E. Overseas Business
The global economy is greatly influenced by the current geopolitical development with many uncertainties with higher inflation and increased interest rates coupled with Russia -Ukraine crisis. It is also possible with present conflict situation in East Europe, OPEC mostly led from the GCC area is expected to manage the oil supplies elevated. Uncertainties about the course of war in Ukraine and its consequences will continue to persist in the near future. The Middle East Region is expected to maintain higher investment outlays and besides oil, the region is also diversifying into renewable energy and diversification into non-oil sector industrial development.
After entering the overseas market in a big way, Power Mech has commissioned power plants adding up to a capacity of over 6,792 MW in North Africa, Middle East and Bangladesh. Around 400 MW of gas based plants are under completion in Nigeria area and 1,320 MW of Coal based installation work is in progress in Bangladesh. So far the Company has completed 26 Gas turbines (4,256 MW) and 13 Steam turbines (1,592 MW) in GCC area of Middle East. This has given a strong foothold as a reliable service provider for plant owners and EPC contractors. Most of these plants are gas
based combined cycle plants. The Company has made good inroads into these regions establishing itself as a renowned Power Plant, Industrial Plant Construction and Operation and Maintenance Company. In short span with the opening of the office in Dubai, the Company established market presence in Saudi Arabia, Kuwait, Oman, Bahrain, UAE and further expanded the business into Bangladesh and West Africa with undertaking of power plant installation works in Nigeria. The undertaking and its successful completion in various Countries across the Gulf region also helped the Company in entering the O&M segment of the business. This has lead the Company to win O&M contracts in the Power, Diesel, Oil & Gas and Petrochemical Sectors in GCC and Africa with reputed clients such as Dubai Electricity and Water Authority (DEWA), Sharjah Electricity and Water Authority (SEWA), Abu Dhabi Oil Refining Company (ADNOC), Dangote Group etc. The Company is expecting a strong O&M order inflow from these regions.
1. Middle East
In the Middle East and particularly in the GCC area, the major players are Saudi Arabia with an installed base of 97 GW, UAE of 44 GW and Kuwait has an installed base about 20 GW. The expected growth in the power needs is around 3% to 5% in the region. According to World Bank the GDP of GCC nations for the year 2023 is expected to expand by 2.5 %. The future of energy scenario in the GCC area is more of investments away from Oil to Renewables and to Gas based generation.
The total volume of desalination water in the GCC is around 6.4 billion m3 per year. This represents 40% of the total Worlds desalination water capacity with Saudi Arabia and UAE leading the charts. Lot of investments are expected to flow into the region over the next decade to construct new desalination plants as there is a growing demand for both industrial and drinking water. This poses an opportunity to the Company in both construction and maintenance space.
The major achievement of the Companys presence in Middle East is mainly in the GCC area and having done both installation works of mostly gas and oil based power plants & undertaking O&M works. The Regions Dubai office has been driving the market reach, with more emphasis on the O&M sector and also providing manpower services. Also most of the GCC Countries are investing more into renewable power in the coming days, but the investments in desalination plants and oil sector should continue to drive the market potential for service and installation contracts.
2. Africa
The pandemic has pushed the Sub-Saharan African region into recession in the year 2020, the first economic recession in 25 years. However, it had a strong recovery in the year 2021 by rebounding with a growth rate of 4.5%. African Electricity Sector is plagued with a lot of problems led by only 58% of the total African population having access to electricity. The installed base in Africa being augmented to 510GW by 2030. With average per capita electricity consumption of only around 500kwh and the need of enhancing to more than 700kwh. Region-wise only North Africa has an acceptable electricity access with the rest of Africa hovering around the 50% rate. Besides this two-thirds of the African grids are considered unreliable and as a result of this there are more than 7 million nonutility backup diesel generators on the continent, producing carbon emissions equivalent to 120 coal-fired power plants.
As regions economic growth is directly linked to the electricity access of a region and hence, it is imperative for the region to make investments to build stable and reliable energy assets. This opens up multiple opportunities for the Companys industrial construction division. The region is also in need of companies that can efficiently manage its electricity generating assets and reduce the downtime of assets. This is a huge opportunity for Companys O&M business.
The Companys major thrust of undertaking the $ 78 million in Nigeria in 2021 and its near completion for the Danogote Oil Refinery, captive power plant of 400 MW capacity has been major achievement. With the ongoing commissioning operations of the captive power plant under trials, the Company has been entrusted with a long term O&M contract. With this huge market reach in West Africa, The Company has already initiated market reach to identify market opportunities in Ghana, Tanzania and Uganda to expand the market base. To strengthen the organisation base a senior level management posting is in place to continuously work on various opportunities related to new investments.
3. Bangladesh
Bangladesh is a growing economy in South Asia and is considered as one of the fastest growing economies in the World. It achieved a GDP growth of 7.2% in 21-22. With the need to meet the growth in the GDP, there is obvious increased demand for electricity in the Country. The present grid connected installed base is 23,482GW which is heavily dependent on the gas based power plants and the Government is keen to shift the Gas based power generation with imported LNG based power generation and also with a modest growth in the installation of coal based plants. Based on the economic review of the Government of Bangladesh, the demand for power is expected
to increase from the present capacity of 23,482MW to 40,000 MW (revised) by 2030 and further capacity addition to increase the installed base to 60,000 MW by 2041. This is to enable the power generation to match with expected higher growth of GDP in the Country. It was initially felt that capacity enhancement can be augmented with more coal based generation, but this policy has been changing with more emphasis on gas and renewable power in the coming years with coal playing less role.
The Company is fully established with the successful completion of two major gas based projects of 380 MW Combined Cycle plant at Bheramara working for L&T who was the EPC contractor, another combined cycle plant of 220 MW was completed at Bhola. The execution of the coal based Maitree project at Ramphal of 2x660 MW is in full swing where in the Company is a key player to work with BHEL with a combination of Civil, Structural and ETC works and nearly 80% of work completed as on date. This project is a joint venture between Bangladesh Power Development Board and NTPC. The joint venture company is called Bangladesh India Friendship Power Co Ltd (BIFCPL). The EPC of the entire project was awarded to BHEL and Power Mech has taken multiple jobs like plant civil works, main power house work, boiler erection, structural erection along with steam turbine and coal handling installation works. The successful completion of the earlier projects and the present execution of Maitree project should enable the Company to keep its focus on the expanding power scenario in Bangladesh in this decade where in nearly 12,500 MW of capacity of plants are under various stages of construction.
Also there is scope in entering the O&M segment of the business with increased capacity generation happening in Bangladesh both in the coal based units and also gas based power plants. As first step in this direction with the expected completion and start of commissioning operations of the Maitree project, the project developer has awarded the first lot of maintenance work on long term basis. This initial breakthrough expected go up substantial as the plants gets commissioned. There are various segments of work on which the service scope of the work can be expanded.
F. Manufacturing and Heavy Fabrication
This was part of the new initiative for backward integration for the service business of the Company related to manufacture of spares, components for power and industry segments. The Company has invested in advanced manufacturing and machining facilities at Noida for catering to the range of components of spares, repair and reconditioning of parts and components for entire range of services needed for Thermal and Hydro sector needs with scope of enhancing the opportunity in other industry sectors.
The Noida facility is functioning for the last five years and this facility created to cater the Operation & Maintenance (O&M) market of power sector spares business and also use the facility for undertaking many job works from other segments of industry. This facility can undertake major works related to manufacture, supply of rebuilding of spares, major repairs of steam turbines, rotor balancing and reverse engineered parts manufacturing for various rotating parts of power plant both in Thermal and Hydro sector. Job works also have been done for railway electrification needed parts.
With the new requirements of many customers for the structural packages, with away from site fabrication, the need arose for establishing a proper facility for heavy fabrication catering to the needs of steel, power and other segments. Presently the Company is catering to heavy fabrication at various ongoing sites like Yadadri, Bhusawal, Kurmitar, Talabira & Khurja with structural fabrication works taken up. The planned heavy fab shop can be a huge opportunity for factory made structural items for various sectors in steel, power, coal, oil and gas. There is a need to create more opportunities for the planned heavy fabrication facility for structural business. The intent of the Company is to make the facility fully exploit the market needs in different segments and utilizing the capacities created for sustained business growth with the booming infrastructure development and capacity expansions across various sectors.
Financial Review:
Analysis of the Profit and Loss statement:
Revenue: The Company has reported a total income of 3,618.19 Cr during the FY 22-23, whereas during the FY 21 -22 the reported total income was 2,727.80 Cr. Contract revenue from O&M business has gone up to 929.59 Cr from 804.67 Cr increased by 16% with the increased order book, revenue from Erection, Testing and Commissioning (ETC) has increased from 521.15 Cr to 605.91 Cr increased by 16% & Electrical business has decreased to 69.46 Cr from 93.00 Cr reduced by 24% of the total contract revenue. Also, the contract revenue from Civil & others including railway and water projects has gone up to 1,995.48 Cr from 1,290.48 Cr increased by 55% due to increase in civil & other order book. The reported hire & other income is 17.75 Cr during the year as against 18.50 Cr during the preceding financial year.
The Operation & Maintenance revenue pie has contributed 26% of the overall contract revenue. Similarly, Erection, Testing and Commissioning (ETC) has contributed 17%, Electrical Business has contributed 2% and Civil & others including railway and water projects contributed 55% of the total contract revenue. Whereas during the preceding FY 21-22 the revenue contribution from Operation & Maintenance Business was 30%, Erection, Testing and Commissioning (ETC) business was 19%, Electrical Business contribution was 3% and from Civil & others including railway and water projects contribution was 48% of the total contract revenue.
With the change of order book mix the revenue profile has undergone change. The revenue from operations increased by 32.89% from 2709.30 Cr to 3600.44 Cr.
Other Income: The Company has reported other income of 17.00 Cr in FY 22-23 and 17.31 Cr in FY 21-22. This mainly consists of interest on fixed deposits with various banks, foreign exchange fluctuations etc.
Expenses:
Raw Material Cost: The cost for FY 22-23 is at 536.18 Cr and 336.19 Cr in FY 21-22, increased by 59.49% over the previous year on account of growth in revenue. This represents for 14.82% of total income in FY 22-23 against 12.32% of total income in FY 21-22, due to change in revenue mix.
Contract Execution Expenses: Expenses for the FY 22- 23 is at 2,092.82 Cr and 1,633.09 Cr in FY 21-22, the same is increased by 28.15% over the previous year cost, attributable to growth in business. This represents for 57.84% of total income in FY 22-23 as against 59.87% of total income in FY 21-22, due to change in business mix.
Employee Cost: Employee Cost for the FY 22-23 is 542.83 Cr as against 423.16 Cr during FY 21-22. This represents for 15.00% share of the Companys total income in FY 22-23 against 15.51% of total income in FY 21-22. The variance in employee cost is mainly due to increase in operations and business mix.
Depreciation: Depreciation on fixed assets for the year stands at 42.91 Cr & the same is increased by 1.19% over the previous year cost.
Finance Cost: Cost for the year is 89.54 Cr, increased by 12.67% over the previous year. This represents for 2.47% share of the Companys total income in FY 22-23 against 2.91% of total income in FY 21-22.
Corporate Tax: The tax expense of the Company for the financial year 22-23 is 73.14 as against 36.30 Cr during the previous year.
Analysis of the Balance Sheet Source of funds
Total Capital Employed: The total capital employed including minority interest increased to 1,751.83 Cr as on 31st March, 2023 from 1,573.55 Cr as on 31st March, 2022. This is mainly due to increase in net worth on account of profits earned during the year, preferential allotment made during the year.
Net Worth: The net worth of the Company excluding minority interest increased by 22.24% from 1,043.31 Cr as on 31st March, 2022 to 1,275.38 Cr as on 31st March, 2023 due to profit earned during the year and preferential allotment made during the year. The Companys equity share capital comprising 1,49,06,357 equity shares of 10/- each.
Debt: Borrowings of the Company decreased by 9.87% from 527.15 Cr as on 31st March, 2022 to 475.13 Cr as on 31st March, 2023. The debt-equity ratio of the Company stood at 0.37 in FY 22-23 compared to 0. 51 in FY 21-22.
Application of Funds
Fixed Assets: Fixed assets of the Company increased from 405.05 Cr as on 31st March, 2022 to 446.63 Cr as on 31st March, 2023 on account of additions to the fixed assets during the year under the head Cranes, Plant and Machinery and Motor vehicles to support execution of various new projects.
Investments: Investments of the Company decreased from 36.65 Cr as on 31st March, 2022 to 35.74 Cr as on 31st March, 2023 on account of losses incurred during the year in associates and joint ventures.
Working capital management
Current Assets: Current assets of the Company increased from 2059.94 Cr as on 31st March, 2022 to 2,481.55 Cr as on 31st March, 2023 due to increase in trade receivables, retention money, uncertified revenue, Inventory and cash and bank balances. The current and quick ratios of the Company stood at 1.58 and 1.49 respectively in FY 21-22 compared to 1.53 and 1.43 respectively in FY 21-22.
Inventories: Inventories includes raw materials, work-in-progress and finished goods increased by 7.03% from 137.66 Cr as on 31st March, 2022 to 147.34 Cr as on 31st March, 2023.
Receivables: Trade receivables increased from 666.57 Cr as on 31st March, 2022 to 893.51 Cr as on 31st March, 2023. The increase is mainly due to increase in revenue from operations and revenue mix. The Company debtor turnover cycle is 91 days of turnover in FY 22-23 compared to 89 days in FY 21-22.
Margins: The EBIDTA margin of the Company increased to 11.62% from 11.12% and PAT margin of the Company increased from 5.13% during FY 21-22 to 5.81% during FY 22-23.
Key financial ratios
| 1 Particulars | FY 22-23 | FY 21-22 | Change |
| Debtors turnover (days) | 91 | 89 | 1.78% |
| Inventory turnover (days) | 15 | 19 | (21.38)% |
| Interest coverage ratio | 4.22 | 3.35 | 25.81%* |
| Current ratio | 1.58 | 1.53 | 3.32% |
| EBIDTA / Turnover (%) | 11.62% | 11.12% | 4.53%* |
| Debt equity ratio | 0.37 | 0.51 | (26.95)% |
| Return on equity (%) | 18.05% | 14.21% | 27.04%* |
| Return on capital employed (%) | 22.28% | 17.72% | 25.73%* |
| Book value per share () | 855 | 709 | 20.65% |
| Earnings per share () | 141.26 | 94.48 | 49.50%* |
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- No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Risk Disclosure on Derivatives
- 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
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- Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
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Copyright © IIFL Securities Ltd. All rights Reserved.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
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This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.