Shares in India’s Patel Engineering shot up on Monday on news the firm will execute a large domestic contract for state-run hydroelectric power producer NHPC.
Patel Engineering’s stock finished 8.76% higher at INR18 ($0.24) on the National Stock Exchange after it told shareholders it gained an INR12.5bn ($169.4m) contract from Lanco Teesta Hydro Power, a subsidiary of NHPC, as per a 27 September regulatory filing.
The contract governs the construction of an underground power house, transformer cavern, shafts and associated structures for the upcoming 500MW Teesta-VI Hydro Electric Project, located in the South Sikkim district in north-eastern India.
India’s hydropower superpower
Patel builds tunnels and underground structures for reservoirs and hydropower projects. The firm said it has worked on over 85 dams and 40 hydroelectric projects, building more than 300km of tunnels for clients that are mostly state-run entities in India. The Mumbai-based contractor has a market capitalisation of around INR8.32bn.
Faridabad-based NHPC is India’s largest developer of hydroelectric power. The renewable energy producer has an installed power-generation capacity of 7071.2MW from 24 power stations, according to its website. It also has interests in diversifying into solar and wind power.
Blue Planet prize
Last week, NHPC said that its 510MW Teesta-V Power Station bagged the prestigious Blue Planet Prize from London-based non-profit organisation International Hydropower Association (IHA), as per a media statement. The IHA Blue Planet Prize is awarded to hydropower projects demonstrating sustainable development excellence.
“The sustainability assessment of the Teesta-V Power Station was a learning experience for our organisation as it was the first such assessment carried out in India,” NHPC’s chairman and managing director, A K Singh, commented.
“It will encourage and inspire us to achieve higher standards in sustainable hydropower generation,” he added.