Earlier this year, Brazil invited bids for power transmission projects that would cumulatively attract investments of $4 billion. The next round of tenders, scheduled for December, is expected to be as big, if not bigger. “We are very aggressive about the international market. Our consultancy programmes are going on but now we are concentrating on Brazil. We will bid for two to four projects in December,” PowerGrid chairman IS Jha told.
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The state-run company is looking at expanding its business overseas from only consultancy jobs to turnkey projects, and is keen to win projects in Brazil under the build-own-operate-transfer (BOOT) model.
RPG Group’s engineering company, KEC International, plans to tap into the opportunity in Brazil by entering pre-bid pacts with international developers. The company already has a presence in Brazil through its acquired subsidiary, SAE Towers.
“Orders in India have slowed down. Also, banks are reluctant to commit more money. This market is still very competitive. Brazil is offering volume and easier financing options in transmission projects,” said Vimal Kejriwal, managing director of KEC International. Sterlite Power bagged two orders in Brazil earlier this year, becoming the first Indian company to do so in the South American country. The company will bid for the next round, albeit with caution, said CEO Pratik Agarwal.