Stock Insight: Power Play

The power transmission sector in India is all set for a mega changeover. With the increase in demand for electricity, the country urgently needs to increase its generating capacity as well as strengthen the existing transmission infrastructure. The government has embarked on a plan to add 33,000 MW of capacity in the public sector and 6,500 MW of capacity in the private sector by 2006-07. The five-year plans propose to create a national grid to boost transmission capacity by adding over 60,000 km of transmission network by 2012. An investment of Rs 70,500 crore has been lined up to link all regions of the country. The Centre's ambitious programme for rural electrification with planned investments of Rs 1,70,000 crore up to 2012 has thrown open opportunities in this space for players like Kalpataru Power Transmission, that are betting on new transmission projects. Kalpataru Power has drawn up a strategy to emerge as a major infrastructure player in the country. A healthy order-book of Rs 2,000 crore, high margins and the entry into the pipeline contracting business hold great prospects for the company. The

This article was originally published on October 01, 2006.