Monday, June 27, 2011

RInfra to bid for at least 5 highway projects this year

Reliance Infrastructure will bid for at least five “big” road projects of the 18 that the National Highways Authority of India (NHAI) is likely to call for this year.

“We will choose projects which are urban centric and high density traffic corridors,” said Mr Lalit Jalan, CEO & Whole Time Director of Reliance Infrastructure Ltd. Quoting “a top official”, he said NHAI is expected to award contracts to build 7,300 km of road worth Rs 50,000 crore this year. Last year it awarded contracts for 1,800 km.

Mr Jalan was in Chennai recently with regard to the company's 60-km Hosur-Krishnagiri road project (worth Rs 925 crore) going operational.
Market share

Currently, with a portfolio of 11 projects (of 1,000 km and worth Rs 12,000 crore) across four metros and seven tier II cities, Reliance Infra holds 8 per cent market share.

“Our intention is to take that to 10 per cent during the current year,” he said.

With almost 10 projects expected to go operational and start generating revenue latest by the end of 2011, it expects at least Rs 1,000-crore revenue for the whole of 2012-13.
Power sector

In the power sector, Reliance Infra, which distributes power in Delhi and Mumbai, hopes to bid for licences in more cities in the next couple of years as the sector gradually opens up. “We see huge growth potential in the transmission space as the country targets adding 200,000 MW generation capacity in the next five years,” said Mr Jalan.

The company already has exposure to generation through a 38 per cent stake it holds in group firm Reliance Power, which is building 35,000 MW of capacity.

Source- Businessline
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