T & D sector ended year in positive note

T & D sector ended year in positive note
“KEC has transformed from being a purely transmission EPC company into a multinational diversified infrastructure major,” emphasises Vardhan Dharkar, Executive Director (Finance), KEC International
Highlights of 2012 for Indian infrastructure EPC sectorTransmission and distribution sector has fared relatively better as compared to other infrastructure sectors. Besides, government has initiated to restructure SEB financials which we expect to yield positive results. However, the government needs to make concerted efforts to revive the investment in infrastructure.
KEC in 2012We started the year with an order book of Rs. 8,572 crore which is currently over Rs. 9,000 crore. During the first two quarters, our execution was very good and we have seen a good growth in our revenue. If we look at the first half of FY13, we have achieved revenue of Rs. 3,032 crore which is 32.7 per cent increase over the same period of previous year. We consistently bagged new orders in each of our businesses including power transmission, power systems, telecom, cables, water and railways. Presently, 51 per cent of our order book is contributed from the international markets and the good part is that these orders are geographically well spread. KEC has also entered into new countries such as Turkmenistan and Uganda — which is positive for us.
Significant projects In the last few years, KEC has transformed from being a purely transmission EPC company into a multinational diversified infrastructure major. In the last few years, we have added new businesses including power systems, water and railways. We have seen a good growth in our new businesses which have contributed close to 30 per cent of our order book.
The ongoing transmission line project for CESC in Haldia, West Bengal is one of our prestigious projects, and it involves supply, erection and stringing of the river crossing section of 400kV DC transmission line between Haldia Power Generation Plant of CESC and Subhashgram Substation of Power Grid. The unique part of this project is that KEC is establishing this line across the Hooghly river, a major passage for international freight. The span between the river-crossing towers between Haldia end and Raichak end is 1,572 metres, while the total length between anchor towers on either side is 2,923 metres. The towers used for river crossing are massive, having a base width of 55 metres, height of 236 metres and weight over 1,700 tonnes each. The work requires immense technical capability as some part of it need to be executed on the river itself.
Similarly, we have just completed the first ever 500 kV DC line across the Nile river in Egypt. The tower for the river crossing has a height of 153 metres and weight of 228 tonnes. We also completed the 1,200 kV DC test line at the Bina Substation for Power Grid.
Challenges in infrastructure EPC businessEPC infrastructure sector is facing several challenges as a whole.  • Right of way, land acquisition and environment: Government needs to frame transparent and fair guidelines after evolving consensus of the stakeholders involved. • We also need to adopt modern project management practices in planning and monitoring for smooth project execution.
Target for 2013During the last five quarters, we have experienced over 25 per cent consistent year-on-year growth, and currently we have a robust order book of over Rs. 9,000 crore. We have been continually bidding for new projects in India and abroad. We see opportunities in each of our businesses, including transmission, power systems, cables, water and railways in both domestic and international markets. We are getting good orders and expect to continue the momentum and gradually improve our overall margins.

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