IVRCL mulls integrated township for Mundra power project

Hyderabad-based IVRCL Infrastructure & Projects Ltd is mulling taking up a BOOT-based integrated township project for Mundra Ultra Mega Power Project in Gujarat.

The $1 billion company has been approached by Mundra for constructing the township on a 1,000 acre-wide land. The infrastructure company will be deciding on the project within 2-3 months.

"We have been approached for constructing an 1,000-acre huge integrated township at the upcoming Mundra Ultra Mega Power Project site but we are mulling over it right now," said R Balarami Reddy, director-finance & group CFO, IVRCL Infrastructure and Projects Ltd. Citing a huge backlog of orders as the reason, Reddy said IVRCL will be able to decide only after 2-3 months.

The company, which is into infrastructure, power and water distribution business, has a order book of Rs 9,500 crore, of which nearly Rs 5,500 is for water distribution which makes up 50 per cent of its business, apart from Rs 2,000 crore for roads projects and Rs 1,000 crore each for construction and power.

Reddy also said that IVRCL Infra will be executing around Rs 3,500 crore worth of orders during fiscal 2007-08, including Rs 500 crore worth of orders in the power sector.

The company has its water distribution business spread over 22 states in the country and power projects like setting up transmission lines, sub-stations, distribution lines and rural electrification in Uttar Pradesh, Bihar, Jharkhand, Tamil Nadu, Andhra Pradesh and Chhattisgarh.

According to Reddy, the infrastructure in the country is witnessing a boom with around $475 billion to be spent on the industry in the current fiscal, of which 60 per cent will be invested in construction industry.