Chennai-based BGR Energy Systems Ltd. will foray into the large-size water treatment business after winning two contracts worth Rs 650 crore.
The contracts include a Rs 209.5 crore water treatment plant package in Krishnapatnam, Andhra Pradesh and a Rs 440 crore tertiary treatment plant in Kodungaiyur, Chennai, BGR Energy said in a media statement on Wednesday.
The contract from the Andhra Pradesh Power Development Company Ltd., will have BGR Energy manufacturing, inspecting, testing and erecting 3x800 MW unit at the Sri Damodaram Sanjeevaiah Thermal Power Station in Krishnapatnam, Nellore.
The units are expected to be completed over the next 23 months and will have an aggregate treatment capacity of over 55 million litres per day. BGR Energy will also carry out operations and maintainence of these units for the first 12 months.
The second contract worth Rs 440 crore, includes designing, building and operating a tertiary treatment reverse osmosis plant at Kodungaiyar, Chennai. The contract has been awarded by the Chennai Metropolitian Water Supply and Sewerage Board, with a capacity of 45 million litres per day.
The total value of the contract includes Rs 235 crore for the contruction of plant and transmission pipelines while the other Rs 205 crore is for operations and maintainence over the next 15 years. The duration of the contract is 24 months, including construction and commissioning. Another six months have been allotted for a trial run. The project is funded by the World Bank.
BGR Energy Systems previously operated under five verticals – power projects, oil and gas equipments, Air Fin coolers, environmental engineering and electrical projects.
Having gained expertise in water and effluent treatment technologies, the company decided to foray into the large-scale water treatment business.
The company is placing strategic thrust in these segments in anticipation of huge upcoming potential.BGR Energy Systems Media Statement
The two new contracts takes BGR Energy's order book to Rs 10,425 crore.
The stock closed 6.5 percent higher at Rs 125.5 per scrip on the Bombay Stock Exchange.
RECOMMENDED FOR YOU
POPULAR