SANKALP Aug 2012 - SPML

InterviewIndia Water Review interview ofMr. Rishabh Sethifor pumped water supply scheme including 75.5kilometers of water transmission line under “SwarnimGujarat Saurashtra - Kutch Water Grid” program.The scope of works include 75.5 kilometers of 2300 and2400 mm diameter MS Pipeline for pumped water supplyscheme with intake arrangement pump house, pumpingmachinery along with civil mechanical electrical andinstrumentation control works with 3 years of Operations& Maintenance (O&M).The Rs 79 crore order from PHED Jaipur is for WaterSupply Scheme for 153 villages and their Dhanies fromMalpura, Mor and Pachewar head works under BisalpurDudu Water Supply Project with 10 years of O&M.New Delhi : Delhi-based water infrastructure companySPML Infra Ltd has been active in various EPCprojects in water and wastewater treatment space acrossIndia. Now, the company believes that the next phase ofgrowth in the water sector will come in management ofcity water distribution systems and long term operationand maintenance contracts.SPML Infra Executive Director Rishabh Sethi told GirishChadha of India Water Review that the companyis currently pursuing several PPP projects and has astrategic plan to increase presence in water, wastewaterand SWM sectors in the next three-five years and makeSPML as the largest player in the urban utility services inIndia.What is the current product portfolio of SPML InfraLtd? What percentage of the overall business iscontributed by water?SPML has over three decades of multidisciplinaryexperience in executing world class infrastructure for watertreatment and transmission, wastewater treatment andrecycling, solid waste management, power transmissionand distribution and civil infrastructure development.Our water and wastewater projects contribute roughly70 per cent in our overall business.SPML had late last year announced that it hadbagged orders worth Rs 592 crore from Gujaratand Rajasthan for water projects. How is the orderbook position book of SPML looking up in fiscal2011-12 and 2012-13?SPML has won prestigious EPC orders worth Rs 513Crore from Gujarat Water Infrastructure Limited (GWIL)And another Rs 25 Crore order for 48 Km 400 KVTransmission Line (Bhilwara to Chittorgarh) fromRajasthan Rajya Vidyut Prasaran Nigam Limited.The order book position stands at Rs 3500 crore in2011-12 and we expect to add another Rs 1000-1200crore worth new projects in our account in next financialyear.SPML was planning to rope in a foreign investor tohelp finance its expansion activities. At one stage,SPML was in talks with private equity (PE) fundsto raise about Rs 125 crore in the latest round offunding. How have things progressed on thisfront? Are the promoters looking to divest equity tofinance expansion activities.SPML is aggressively pursuing PPP projects in thewater and wastewater space along with managementcontracts for city distribution. We believe the next phaseof growth in the water sector will come in managementof city water distribution systems and long termoperation and maintenance contracts. Currently, we areoperating six city distribution systems. We are looking atfinancial partners to grow and develop the private watermanagement business.Most of the projects bagged in recent monthsby the company have been in the EPC space. Isthe company only focusing on the municipal/government segment or also looking at theindustrial and private sector? Are there also plansto expand presence in the BOOT/PPP space in waterand wastewater treatment?Our projects are not limited to EPC only; we are currentlyexecuting a large number of PPP projects both in waterand solid waste sectors. Our main focus will remain on22SANKALP