Anil Ambani-promoted RInfra loses NTPC order worth Rs 567 crore to GE

Anil Ambani-promoted RInfra loses NTPC order worth Rs 567 crore to GE

While Anil Ambani-promoted Reliance Infrastructure looks to almost double its existing order-book in the current financial year, not all is well with its existing orders. One of RInfra's contracts worth Rs 567 crore from NTPC has been re-tendered and awarded to another company this month.

In February 2018, RInfra informed exchanges it has received the Letter of Approval from NTPC for Flue Gas Desulphurisation (FGD) works of its 3x500 Mw power plant in Jhajjar, Haryana. “The project has been re-tendered and awarded to GE,” said a person with knowledge of the development. The reason for re-tendering is not clear. An email query sent to RInfra last week remained unanswered.

On June 4, GE Power informed exchanges it has won a contract worth Rs 738 crore from Aravali Power Company for Flue Gas Desulphurisation. Aravali Power is a Joint venture company of NTPC, Haryana Power Generation Company and Indraprastha Power Generation Company, which holds the Jhajjar power plant in Haryana.

In its post results media interaction, RInfra pegged its total order book at over Rs 28,000 crore. Queries sent to RInfra on the status of the NTPC projects and whether Rs 28,000 crore includes the project remained unanswered.

For the current financial year, RInfra looks to increase its order book to close to Rs 50,000 crore. In its June 2019 presentation, the company said it targeting opportunities of about Rs 3 trillion in FY20 and bids participation in projects of Rs one trillion and is poised to build order book of Rs 50,000 crore.

The other projects that RInfra is executing include the Versova-Bandra Sea Link, a package for Mumbai Nagpur Expressway, parts of the Mumbai-Metro network, Hirasar airport project in Gujarat and the Kudankulam Nuclear Power Project. Of these, the Sea-link project for Rs 7,000 crore is also facing land and other clearance issues unrelated to RInfra.