India's HCC and London's Halcrow Secure $560 Million EPC Contract for 330-Megawatt Hydropower Project

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Hindustan Construction Company Limited (BSE:500185) (HCC) (Mumbai), a leading engineering and construction firm, in a joint venture with the Halcrow Group Limited (London), an infrastructure development management and consultancy firm, has secured a turnkey contract valued at $560 million from NHPC Limited (Faridabad, Haryana), formerly known as National Hydroelectric Power Corporation Limited, to develop the 330-megawatt (MW) Kishanganga hydroelectric power project in Jammu and Kashmir. The project is scheduled for completion and commissioning within 84 months.

Under the engineering, procurement and construction contract, HCC will be responsible for the supply, installation, testing and commissioning of hydromechanical units, including generating components and electromechanical plant and machinery. HCC will also undertake civil and allied infrastructure work. Halcrow will perform due diligence for the project. The consortium of HCC and Halcrow is in the ratio of 98:2.

The Kishanganga hydroelectric power project is situated on the Kishanganga River in the Baramulla district. The project entails the construction of a 37-meter-tall concrete-faced rock-filled dam, a 23.5-kilometer headrace tunnel and an underground power station. The power plant will comprise three 110-MW units that will work under a maximum gross head of 665 meters and generate 1,350 million kilowatt-hours of energy. The cost of the project was earlier estimated at $459 million but has recently been revised to $746 million upon approval from India's Cabinet Committee on Economic Affairs. The Union Cabinet approved the project in October 2007.

HCC's hydropower projects account for 23% of India's hydropower generation capacity. The firm is credited with having developed the Salal Dam, the largest hydroelectric power project in Jammu and Kashmir, with a generating capacity of 690 MW. It is currently involved in five infrastructure projects in the state, including three hydropower projects: the 44-MW Chutak project in Kargil, the 45-MW Nimoo Bazgo project in Leh and the 480-MW Uri project in Baramulla. HCC is also developing the 84-kilometer long Mughal Road and the Pirpanjal Tunnels for the Udhampur-Srinagar-Baramulla railway project in Jammu and Kashmir. The firm has also constructed the 1,020-MW Tala power plant, the largest hydroelectric power project executed in Bhutan by India.

Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services.