Sterlite Tech's arm bags UMTP project; stock rallies 10%

MUMBAI: Shares of Sterlite Technologies surged in trade after its arm Sterlite Grid bagged sixth ultra-mega transmission project (UMTP) on build-own-operate basis by the Ministry of Power.

The project consists of one substation and 800 circuit kilometers of 400kV lines in the states of Punjab and J&K. Sterlite Grid has quoted an annual tariff of approximately Rs 440 crores per year, which is 5 per cent lower than the next highest bid.

This will be Sterlite Grid's largest project in terms of revenues and scale.

"We look forward to commissioning this transmission link in record time with the help of the State Government, the Government of India, and the people of Jammu & Kashmir" said Pravin Agarwal, Director, Sterlite Technologies.

"Sterlite Grid now has a portfolio consisting of over 5000 circuit kilometers of EHV lines and 3 substations. When operational, this portfolio will deliver approximately Rs 1100 crores of tariff per year," the company said in a filing to stock exchanges.

Its first three projects are in final stages of construction whereas its first operational line Purnea to Biharsharif 400kV D/C has been generating revenue since September 2013.

At 09:30 a.m.; the stock was at Rs 42.75, up 10.74 per cent, on the BSE. It touched a high of Rs 42.85 and a low of Rs 39.50 in trade today.