REC Ltd.

State run Rural Electrification Corporation (REC) has invited technical bids from domestic and international developers to award Rs 1,300 crore contract for laying transmission system in Andhra Pradesh. The contract involves laying two high capacity transmission lines of 250 km length each for connecting various independent power stations in Vemagiri to Hyderabad.

REC would conduct bidding for the build, own, operate and maintain contract and June 14, 2011 would be the last date for submission of technical bids.  Apart from this, the government has identified four more such high capacity transmission systems to be awarded to private companies for which Power Finance Corporation and Rural Electrification Corporation will conduct bidding for the projects.

Six such projects worth Rs 10,860 crore pertaining mainly to strengthening of interconnection between north and western region has been awarded so far by the Government. Vedanta Group's Sterlite Transmission Projects has bagged contracts to build three large power transmission links. Reliance Power has bagged two such projects while a consortium of Simplex Infrastructure, Patel Engineering and BS Transcomm has been awarded a contract.

Power transmission in India is monopoly of Power Grid Corporation of India that owns and operates about 45% of inter-state transmission system. The government has decided that future inter-state transmission system schemes would be built by private sector entities.

The company has reported a surge of 24.79% in its net profit to Rs 700.26 crore for the fourth quarter as compared to Rs 561.17crore for the same quarter last year. Total income has increased by 23.36% to Rs 2306.33 crore for the quarter to from Rs 1869.57 crore in the same quarter previous year.

The company has posted a net profit of Rs 2569.92 crore for FY11, jumped by 28.40% as compared to Rs 2001.42 crore in the last year. Total income has increased by 26.65% to Rs 8495.26 crore for the year from Rs 6707.60 crore in last year.