ABB's stock up 13% on Rs 4,350 crore deal from Power Grid

The contract is for building the world's largest power transmission link for PGCIL

Power automation firm ABB India saw its stock rise 12.98 per cent to close at Rs 1,175 after investors bought the stock following its Rs 4,350-crore win to build the world's largest power transmission link for Power Grid Corporation of India Ltd.

ABB won a major chunk of the Rs 5,700-crore contract from Power Grid, to lay 1,800 km of high voltage power lines from Raigarh, the capital of Chattisgarh to Pugalur in Karur district of Tamil Nadu. State-run Bharat Heavy Electricals Ltd bagged the remaining value of the deal, a statement said.

With a capacity of 6,000 megawatts, the two-way link will integrate thermal and wind energy for transmission of power to high consumption centres. It will help transmit thermal energy to the South during summer, when wind is low, and transmit clean energy to the north, when there is excess wind power.

ABB's power grid division will deliver the mega project.

"We will leverage our extensive local manufacturing and engineering base in India and proven partnership with our consortium partner BHEL for the execution of this prestigious project," said Claudio Facchin president of ABB's power Grids division.

At the launch of its second solar invertor manufacturing unit at Nelamangala, ABB had announced that for the next few years, it will invest $100 million in research and development in India. The company is due to announce its result on February 9.

HVDC transmission links help conserve land as they occupy only a third of the space compared to the alternative. In the case of the mega project, this amounts to a saving of approximately 244 sq km of space. The mega project will also feature technologies to minimise the footprint of the transmission stations. The project is expected to be completed in 2019, it said.