May 12, 2010

Concurrent Infra to develop 40 MW hydropower project in Sikkim through PPP mode

Concurrent (India) Infrastructure Ltd's is all set to enter an agreement with Sikkim Power Development Corporation Ltd through PPP Model to develop a, "40 MW Hydro project at Labdang in Sikkim". The total project cost is estimated by Sikkim Power Development Corporation is 111.20 Cr. Out of this 30 cr is already spent on developing Preparation of DPR, Procurement of Land and statutory clearances; access road and bridge at site, 30 meter tunnel and for the other civil works. Out of the total cost of work, Sikkim Development Corporation will bear 49% of debt & equity and rest will be contributed to the extent of 51 % by Concurrent.

Commenting on this Mr. K. Sudhir Babu, Director & CEO stated that, "With this Concurrent will have a foot hold in Sikkim. As per estimations, in Sikkim hydro potential is 9000 MW out which only 4000 MW has been allotted. This gives us a chance to strengthen our self in Hydro power".

1 comment:

The Confused Consultant said...

Dear Kalyan
I do hold stakes in Concurrent, these are my doubts-
Questions:
1. Would love to see March 10 balance sheet? Whether company will forward a annual report to shareholders?
2. Gross mismatch between website and BSE notifications: website shows 600 cr project for health ministry which was not reported to BSE, so does 120 cr of roadway work. Under future work (meaning orders received??) 1300 cr from Sino Lanka never reported to BSE so does 135 cr of EPC contract.
3. Where does it get manpower? What are the number of employee working on payroll and as sub contract?
4. 10 trailers will be purchased to supply 15000 mt of material in month meaning 1 trailer will support 1500mt every month. Taking capacity of 25 tonne per trailer it has to make 60 visits every month between Vizak and Orissa (nearest place in orissa will be one way 270kms -540 kms both way, hows that feasible?)
5. Cost of project so far reported: close to 100 cr (many quantification has not been given). Who will fund these? Internal accrual ruled out, there is no reserves and suplus, who gives debt? We should see long term debt if any and whats the debt/equity portion. Trailer cost, power plant cost, subcontract cost to add more!!
6. Whether the company have a company secretary? Paid up capital is 13 cr plus.
7. Executing wind power at SL- whether company possess the technical know how? Ellis Richardson does not have a website? Being a international technical know how company!!
8. It says it has already spent 30 crores for Sikkim power project on project report, land etc. It spent the money before getting a project?
9. Who’s this Brahmani Udyog, they don’t have a website. The same company needs 15000mt of material still don’t have public information i.e. 600 trailers every month?
10. It says 74 cr order from Kranthi Constructions. Who’s this? Yellow pages say it’s a home builder.
11. Under Sikkim government website Concurrent does not appear as developer (possible it may not be updated).
sikkimpower.org/Files/List%20of%20Hydro%20Developers.htm