Tiroda site visit increased our confidence in Unit 1 commissioning timeline estimate of Dec 2011, though APL expects it’s commissioning during 3Q2011. We believe APL’s targeted timeline of 24-26months for Unit 1 commissioning from the start of boiler erection looks achievable when compared with the duration of Unit 1 of 2x600MW Hisar power project executed by Reliance Infra. Shanghai Electric Corporation is the BTG supplier for both these projects
About 35000T of material is at site/port that is ready for erection and about 4000 people are working on the project (out of which only 10 are Chinese; APL expects peak requirement of about 40 Chinese engineers during the synchronization phase); 4) The construction work for 225km transmission line connecting to the substation at Wardha has started from both ends and will be ready for evacuation of power 5) APL received debt sanction letters for funding of Tiroda expansion (1320MW) and expects to award the equipment contract shortly.
Tiroda project will enable Adani to take advantage of n-t strength in merchant rates as commissioning of unit 1 will be 8 mths ahead of the start of the long term PPA
Though the company is quoting at Expensive Valuations, Investors Can look at it only on corrections.
