Reliance Infrastructure reboots EPC business

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MUMBAI: Reliance Infrastructure has decided to reboot its engineering, procurement and construction (EPC) business after scaling it down in the past 3-4 years due to slowdown in orders and shrinking margins.

The company now targets an ambitious order book position of Rs 50,000 crore by 2018-19, a significant rise from Rs 9,000 crore expected by the end of this fiscal, chief executive officer Lalit Jalan said. The Anil Ambani-led company is also in the process of divesting stake in assets to focus more on cash contracts than development projects that require equity investment.

“Going forward, our focus will move away from BOT projects where we have to put equity. We are not looking at any more equity investments. We have completed our capex and are out to monetise these investments. With the current government’s focus on infrastructure spend, we are focusing on EPC projects,” Jalan said.

The company saw its order book shrinking as slowdown took a toll on infrastructure sector and its group company Reliance Power, which was a key source of orders, refrained from taking new projects.