ABB to Boost Indian Power Grid - Analyst Blog

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ABB Ltd . ( ABB ) yesterday received a contract from Power Grid Corporation of India to construct a 400 kilovolt (kV) gas-insulated switchgear substation to the boost transmission capacity in the southern region. The new substation is expected to increase inter-regional transfer capacity between the western and southern regions of the country. This order is booked in the first quarter and is valued at $18 million. ABB expects to complete the construction by 2016.

Per the contract, ABB is required to provide design, engineering, supply, installation and commissioning services. In order to execute this project, the company's supply will include the 400 kV gas insulated switchgear, shunt reactors, control and relay panels based on the IEC 61850 platform. ABB's most modern generation gas-insulated switchgear has a compact and modular design that is small in size, helps in reducing carbon footprint, and improves eco-efficiency.

Power Grid Corporation of India is the country's largest electric power transmission utility with 178 substations and 1,05,343 ckm transmission lines. The company operates approximately 90% of inter-state networks and generates about 50% of the total power required by India.

Prior to the present contract, ABB has earlier supplied numerous gas-insulated substations to Power Grid Corporation and has recently commissioned the 765/400 kV substation at Sholapur, which connects the Raichur-Sholapur transmission line, linking the southern grid to the national transmission grid. This project at Sholapur was completed before schedule. This apart, recently in Mar 2014, ABB Ltd. also received an order from India's central power generation utility company, NTPC, for the supply of ultrahigh voltage transformers and shunt reactors in order to ensure reliable and efficient power generation and grid integration.

ABB is a leading provider of integrated power and automation solutions for conventional and renewable power generation plants and water applications. The company's extensive offerings include turnkey electrical, automation, instrumentation and control systems supported by a comprehensive service portfolio to optimize performance, reliability and efficiency while minimizing the environmental impact.

ABB currently holds a Zacks Rank #4 (Sell). However, other stocks which are worth considering at the moment are Quanta Services, Inc. ( PWR ), Franklin Electric ( FELE ) and VSE Corp. ( VSEC ). All three carry a Zacks Rank #2 (Buy).



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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: ABB , FELE , PWR , VSEC

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