Patel Engineering market share soars to 45 percent from existing 25 percent in Hydropower Sector
MUMBAI, India, March 18, 2024 /PRNewswire/ — Patel Engineering, the fastest-growing Engineering Company in the Hydropower space, is strategically positioned to capitalize on the burgeoning opportunities within the sector. With an impressive order book of over 19,000 crores out of which more than 60% is from Hydropower projects, the company has witnessed remarkable growth, elevating its market share to 45% of the current Hydropower projects under execution in India from around 25% of projects completed in the past.
The Central Electricity Authority’s study underlines the vast untapped potential of the hydropower sector in India, with over 91 GW of unharnessed hydro potential with a civil construction value of more than Rs. 4 lakh crore. Leveraging its market dominance, Patel Engineering is poised to seize an opportunity worth more than 1 Lakh Crore over next 4-5 years.
Patel Engineering Ltd has completed around 40 Hydroelectric projects of approximately 11,000 MW in India out of the installed capacity of 42,000 MW in the past and are currently involved in the construction of around 8,000 MW out of 18,000 MW current under construction in India.
Commenting on the company’s ambitious plans, Mr. Rupen Patel, CMD of Patel Engineers, stated, “Our steadfast commitment to strategic vision and meticulous planning has fueled our exceptional growth trajectory in the Hydropower space. We are dedicated to further strengthening our foothold and driving sustainable development within the sector.”
India’s robust growth in the Hydropower domain, accounting for over 40% of the region’s 2021-2030 expansion, underscores the nation’s pivotal role in driving global hydropower development. The government’s proactive measures, including new long-term targets and financial incentives, are expected to unlock a vast pipeline of previously stalled projects.
As per the reassessment study carried out by the Central Electricity Authority during the period 2017-2023, the exploitable hydro power potential in the country is about 1,33,410 MW, out of which 42,105 MW has been harnessed. Further, there are about 19,460 MW H.E. Projects concurred by CEA and about to be taken up for construction and about 18,790 MW H.E. Projects under Survey & Investigation which are expected to come up for bidding in the next five years.
Furthermore, India’s classification of conventional hydropower and Pumped Storage Hydropower (PSH) projects as renewable energy sources has facilitated increased policy support and access to renewables-only financial assistance. This move has not only made hydropower projects more economically viable but has also streamlined permitting processes, accelerating project development.
Further, Hydro Pumped Storage Projects are necessary to achieve Government of India’s commitment of 500 GW installed capacity from non-fossil fuel sources by the year 2030 and Net Zero carbon emissions by the year 2070. PSPs will help integrate intermittent Renewable Energy with the Grid. It will enable supply of dispatchable RE power and help in meeting the peaking requirement of the Grid. There are about 39 Hydro PSPs of 47 GW being pursued to be commissioned by the year 2029-30. Approximate investment in PSP is expected to be in excess of Rs. 1.50 lakh crores. Here again, Patel Engineering may get a substantial portion of work in the coming years.
In addition to offering low overall investment costs, India boasts favorable conditions such as low labor and construction material expenses, coupled with the availability of economically viable sites in easily accessible locations. These factors, combined with a robust regional trade framework, are propelling the rapid growth of the hydropower sector in the country. Average investment cost in Hydro is around 8 – 10 cr per MW.
As India witnesses a surge in electricity demand and regional trade, Patel Engineering remains committed to spearheading sustainable development initiatives and contributing to the nation’s energy security.
About Patel Engineering
Patel Engineering Limited, founded in 1949 and headquartered in Mumbai, is a civil engineering construction segment company. With over seven decades of experience, the company has constructed various heavy civil engineering works such as dams, bridges, tunnels, roads, piling works, and industrial structures.
Contact
Rahul Kamdar,
+91 9920734573,
[email protected]
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