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India's Hindustan Construction Wins $189 Million Civil Contract from NPCIL

Hindustan Construction Company Limited announced that it has secured a $189 million contract from Nuclear Power Corporation of India Limited for two pressurized heavy-water reactor units.

Released Tuesday, June 01, 2010

India's Hindustan Construction Wins $189 Million Civil Contract from NPCIL

Researched by Industrial Info Resources (Sugar Land, Texas)--Hindustan Construction Company Limited (BSE:500185) (Mumbai), a leading infrastructure company engaged in power, transportation, oil and gas, urban infrastructure and marine sector projects, announced that it has secured a $189 million contract from the state-owned Nuclear Power Corporation of India Limited (NPCIL) (Mumbai) to execute civil works for pressurized heavy-water reactor (PHWR) units 7 and 8 at the main plant of the Rajasthan Atomic Power Project (RAPP) at Rawatbhata, in the Chittorgarh district of the western state of Rajasthan. Each unit will have a capacity of 700 megawatts (MW).

HCC emerged as the lowest bidder for the civil project. In terms of the contract, HCC will be responsible for excavation of the site and the construction of nuclear buildings, station auxiliary buildings, control buildings, ventilation stacks, a stack monitoring room, and a heavy-water upgrading plant. The scope of the project also includes construction of other associated buildings, such as the safety pump house, a fire water pump house, a waste management facility, a new fuel storage building, an overhead water tank, a plant security wall, fabrication work, and an emergency makeup water pool. The project is scheduled to be completed in 50 months.

The 1,180-MW RAPP plant consists of six units, all of which were constructed by HCC. This was the first nuclear power plant to be built in India using indigenous technology. HCC began civil engineering for the PHWRs at units 1 and 2 of the Rawatbhata plant in 1965. In February 2010, the indigenously built Unit 5 began commercial operations using uranium imported from Russia. In March 2010, Unit 6, with an installed capacity of 220 MW, began commercial operations, taking India's total installed nuclear power capacity to 4,560 MW from 19 reactors.

HCC, a leading player in the nuclear power construction sector in India, has built more than 50% of the country's nuclear power plants. The company has constructed 11 of the 19 nuclear power plants in India. HCC is also involved in the construction of two units for the country's largest light-water reactors at Kudankulam in the southern state of Tamil Nadu. The contract value is estimated to be about $75 million. The Kudankulam plant comprises two reactors with capacities of 1,000 MW each. The first unit is likely to be commissioned by the end of this year.

In 2009, HCC signed a memorandum of understanding with AMEC plc (LSE:AMEC) (London, England) to cooperate on building civil nuclear power plants in India. AMEC is an engineering company offering design solutions, project management and consulting services to the nuclear, clean energy, water and environmental sectors. The areas where the two companies will collaborate include engineering, procurement and construction, and the provision of consulting services for setting up nuclear plants. HCC will benefit from AMEC's technology expertise in sourcing and developing electrical and mechanical components for nuclear power plants.

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