The government runs various initiatives to provide electricity to the different corners of the rural and urban areas. It is only possible with the help of power transmission plants, which facilitate transferring the power to the required states. The Ministry of Power basically provides tender to private companies like Sterlite Power Transmission Ltd for setting up new plants.
However, the process involves various steps in which the company must bid to grab the state-based power transmission project. This blog will discuss the process Sterlite Power Transmission Ltd uses to get government-based power transmission projects.
Overview Of Sterlite Power Transmission Ltd
Sterlite Power Transmission Ltd is the manufacturer of the infrastructure of power transmission and operates in Brazil and India. The company has various active projects, most of which are government-based. Sterlite Ltd has an extensive portfolio of power conductors, OPGW, and EHV cables.
It also serves its clients with industry-oriented solutions like upgrading, praying, and strengthening the existing power transmission networks. The company earns revenue through two mediums: bidding on government-based power transmission projects and service fees from maintenance of existing projects.
It is also the sponsor of IndiGrid, India’s first power sector investment trust. Recently, Sterlite Power Transmission Ltd has been awarded the transmission project for the evacuation of power and also received a letter of intent from PFC Consulting Limited to build the project for a period of 35 years.
The financial year 2021-22 has been outstanding for the company in terms of business. During this, Sterlite Power Transmission Ltd won a total of 30 projects under the PPP model. Out of 30, it received 17 projects in India and 13 in Brazil.
In addition, the company’s revenue in FY22 was Rs 5994 crore. At the same time, Sterlite Power Transmission Ltd unlisted shares also performed well, attracting new investors for the company.
How Sterlite Power Transmission Ltd Gets Government-based Projects?
You might be curious about the process of getting government-based power transmission projects. Being an unlisted company, Sterlite Power Transmission has a high success rate of getting the tender for government-based projects. The Government has its bidding system through which companies bid on the project based on their legal tender.
During this, Sterlite prepared its tender, which is lower than the allocated budget assigned for the Ministry Of Power. During this, other competitors also present their legal tender in which they mention the terms, policy, deadline, and their bid price for the project. Here is the quick process which Sterlite Power Transmission Ltd follows:
Preparing The Documents
Every company must have the required documents to participate in the bidding process. Sterlite Power Transmission Ltd gathers the documents based on the demand forecast for the electric power survey. For this, the company prepares its documents according to the model bidding documents issued by CEA.
Submit Detailed Project Report
In the next step, Sterlite Power Transmission Ltd prepares the detailed project report, which includes site specification, water availability, seismological information, soil type, etc. For this, the company sent its officials for the site’s inspection allotted by the government for the power transmission project.
Bid On The Project
Ultimately, Sterlite Power Transmission Ltd participates in the bidding process conducted in two stages. In the initial stage, the financial and technical credentials of the company are evaluated. Once it qualifies at this stage, the company is eligible to submit the bid on the project. The government usually rewards the power transmission project to the company that quotes the lowest financial bid.
Sterlite Power Transmission won many government-based power transmission projects through its unique business model. The company’s success rate in this industry is higher than its competitors. It is the reason Sterlite Power Transmission Ltd unlisted shares remain in demand. If you also want to invest in this company, Sterlite Power Transmission Ltd pre-IPO shares might be perfect for you.
Buy Sterlite Power Transmission Ltd Unlisted Shares With Stockify
Sterlite Power Transmission Ltd bagged various government-based power transmission projects through its active participation. The company has exceptional growth, making it suitable for investment. In the past few years, Sterlite Power Transmission Ltd share price remained positive and provided high returns.
In June 2023, the price of Sterlite Power Transmission Ltd pre-IPO shares increased from Rs 545 to Rs 550 per share. As per the recent market data, Sterlite Power Transmission Ltd share price today is Rs 510, which might increase in the coming months.
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1- What Is The New Project Of Sterlite Power Transmission Ltd?
The latest project of Sterlite Power Transmission Ltd is a transmission corridor from Fatehgarh III to Beawer in Rajasthan. It was granted by the Ministry of Power to the company in 2022.
2- How Does Sterlite Power Transmission Ltd Get Government-Based Power Transmission Projects?
Unlike any other company, Sterlite Power Transmission gets the government-based project through a bidding process.
3- Can I Buy Sterlite Power Transmission Ltd Unlisted Shares?
You can buy Sterlite Power Transmission pre-IPO shares by using Stockify. Here you will get access to the company’s financials and updated unlisted share price.
4- What Is The Current Price Of Sterlite Power Transmission Ltd Shares?
Sterlite Power Transmission Ltd unlisted shares price today is Rs 510 per share. To check updated share prices subscribe to Stockify.
5- Is It Profitable To Invest In Sterlite Power Transmission Ltd?
Since the company is building power transmission stations, investing in Sterlite Power Transmission Ltd pre-IPO shares for long-term benefits is profitable.