ABB Ltd. (ABB) recently received a $55 million contract from a couple of Indian states – Bihar and West Bengal – for manufacturing transmission and distributions substations. The contract comes as part of the expansion plans of the Bihar Grid Corporation Limited (“BGCL”) and West Bengal State Electricity Transmission Company Limited (“WBSETCL”).
The contract requires ABB to provide comprehensive turnkey solutions ranging from designing to commissioning of the gas-insulated switchgear (“GIS”) substations for four locations in Bihar. The GIS substations will be designed using advanced technology from ABB which will allow them to generate as much as 220/132/33 KV (kilovolt) of electricity.
This new technology will enable BGCL reduce the substation footprint by nearly 70%, as compared with the regular air-insulated switchgear (“AIS”) substations. This apart, ABB will also be responsible for providing related equipments including medium-voltage switchgear, systems for fiber-optic telecommunications and advanced IEC 61850-compliant protection and substation automation.
For WBSETCL, ABB will provide an AIS substation with a capacity of 220/132/33 KV for supply of electricity in the Sadaipur region. Along with the substations, ABB will also be manufacturing other required systems including IEC 61850-compliant substation automation, fiber-optic telecommunications systems as well as power-line communication carriers (“PLCC”).
These projects are of crucial importance for Bihar and West Bengal, given the rising demand for electricity. These two states in the eastern India have been witnessing some setbacks in mining and agricultural activities due to consistent power deficits. Moreover, the increasing rate of urbanization in the regions subsequently calls for a significant boost in the power generation capacity. ABB’s state-of-the-art transmission infrastructure will serve to fill the technological gap enabling the two states to meet the growing requirements.
ABB boasts expertise in designing and deploying transmission infrastructure for the modernization and upgradation of power plants, in compliance with the global environmental norms. The company’s extensive experience in providing diverse types of substations, including high-voltage air-insulated, gas-insulated and hybrid substations, will add significant value to this contract.
ABB currently has a Zacks Rank #4 (Sell). Some better-ranked stocks that can be considered at present include Pioneer Power Solutions, Inc. (PPSI), Parker-Hannifin Corporation (PH) and Middleby Corp. (MIDD). While Pioneer Power Solutions sports a Zacks Rank #1 (Strong Buy), both Parker-Hannifin and Middleby carry a Zacks Rank #2 (Buy).
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