Mumbai: Patel Engineering Ltd on Friday said that the company, in consortium with Limak Holding of Turkey and state-owned Bharat Heavy Electricals Ltd (Bhel), has emerged as the lowest bidder for the 1,000 MW Pakal DUL hydroelectric project—one of the largest hydropower projects in the country.

Four groups participated in the bidding, wherein the Patel Engineering-led consortium quoted the lowest price of 8,904 crore, the company said in a statement.

The 1000 MW (4x250 MW) hydropower project is being set up in Doda district in Jammu and Kashmir. The project is to be completed in 66 months.

Chenab Valley Power Projects Pvt. Ltd, a joint venture floated by NHPC Ltd, Jammu and Kashmir State Power Development Corp. and PTC India Ltd had invited tenders to implement the Pakal Dul hydroelectric project.

“Bhel shall design, manufacture and commission 4x250 MW francis turbine generator units," the statement said.

As per the agreement reached between the partners, the share of Jammu and Kashmir State Development Corp., NHPC and PTC in the company will be in the ratio of 49:49:2, respectively, and of the total power generated from the projects, the share of J-K will be 62%, it said.

Patel Engineering’s potential order comes at a time when slow economic growth, which slumped to a decade’s low of 4.5% in the last fiscal year and to an average pace of 4.6% in the first half of the current year, has taken its toll on new projects by private developers, hurting capital goods companies.

Private new projects announcements fell 54% year-on-year and 49% quarter-on-quarter to 19,100 crore in the December quarter, according to a 5 January report by the research division of Citigroup Global Markets Inc.

“Historically, any major uptick in capital expenditure in India has been driven by the private sector. As a result, a sharp decline in private new project announcements continues to paint a dismal picture for capital expenditure," said the report.

Patel Engineering also said it had secured new construction projects amounting to 1,110 crore.

Patel Engineering was trading nearly 8% higher at 64.60 a share on BSE around noon on Friday, while Bhel was nearly unchanged at 155.65 a share. The Sensex was 0.41% higher at 20,393.30 points.

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