Positive: Essar Power: Expansion Plans

Essar Power plans to invest INR 20,000 crore to scale up its power generation capacity by 4,800 mw to 6,000 mw in three years. The company is in the process of raising Rs 15,000 crore in debt for financing four power projects — from banks and PFC - for three thermal plants and a co-generation plant — that the group will build by 2012. Equity contribution will be INR 5000 cr. Debt:Equity ratio of 3:1. PPAs have being signed. Fuel-linkages have been finalized with coal mines in Indonesia. Current capacity of company is 1200 MW. Big Positive.

Analyst Opinion: Crompton Greaves

According to the research firm, Crompton Greaves' June quarter net sales are expected to go up by 10.8% to Rs 2,256 crore on YoY basis. The company's net profit is expected to go up by 16.9% to Rs 143 crore on YoY basis.

Analyst Opinion: Buy: Crompton Greaves

consistent performance at the operating level. Moreover, its ability to improve its working capital management in a tough environment (most other companies have indicated a stretched working capital cycle) is quite impressive. At the current market price the stock is discounting its FY2010 and FY2011 earnings estimates by 16.3x and 14.8x respectively, target of Rs 308.

ABB bags INR 550 million order

ABB India has bagged an order worth Rs. 550 million from Italian-Thai Development Public Company and ITD Cementation for setting up electrical infrastructure and control system at the Kolkata airport. The comprehensive solution will consist of several leading edge power technologies, including power and distribution transformers, low voltage switchgear, power backup, busducts, automatic source transfer switch and capacitor panels. The scope of work includes complete system engineering, supply, installation, testing, commissioning and overall project management. The project is expected to be completed by 2011. Positive.

Distribution Licenses gto be issued in UP

Uttar Pradesh Power Corporation Ltd (UPPCL) today held a pre-bid meeting in Lucknow for the proposed franchisee-based power transmission system in select urban areas of the state.
The meeting was attended by representative of about ten private companies from the power sector, including Torrent, Jamshedpur Utilities & Services Company Ltd, Kalptaru, Reliance, HCL, Crompton Greaves, Avantha, Noida Power Company Ltd and A2Z Power Ltd.
The technical bids will be opened on February 14, while the financial bids will be opened on February 16. In the first phase, this system will be implemented in Kanpur, Agra, Moradabad, Bareilly and Gorakhpur, where the line and transmission losses are as high as 40 per cent. The selected companies will have to give performance guarantee of bringing down the transmission losses to 15 per cent within five year. The selected franchisee will be allotted electricity units at a fixed price.

RPS of 5% announced

GoI has announced RPS of 5% of power demand for utilities. Positive for merchant wind plants.

RPS of 5% announced

GoI has announced RPS of 5% of power demand for utilities. Positive for merchant wind plants.