Alstom Power was the source of much delight in afternoon trades on Tuesday following the announcement of a Rs 87-contract from Hindalco Industries.

By 14:50 IST, the scrip of Alstom Power leaped up 7% to Rs 64.50. It recorded volumes of 67,668 shares on BSE by then. In the 10 sessions between 31 January and 17 February 2003, the scrip jumped 22.3% to Rs 60.30 from Rs 49.30.

The contract envisages upgradation of Hindalco's two boilers using Alstom technology. The electrostatic precipitator will also be upgraded to limit outlet dust emission and is expected to be completed within two years. The work would be undertaken by Alstom Power in association with Alstom's United States operations.

Dealers say Alstom Power is on the rise over the last few days on hopes that the Electricity Bill will be passed into law soon. The Electricity Bill aims at reforming the power sector. The long-standing hurdles to improvement of the power sector will be removed once the Electricity Bill becomes an Act. The rise was also on talk that the government will provide sops for the crucial sector in the Union Budget for 2003-04.

Early this month, Alstom Power had bagged another major contract - a euros 50 million (Rs 250 crore) turnkey contract from Jaiprakash Power Ventures India for the supply of major hydro-generating plant equipment for the 400 MW Vishnuprayag Hydroelectric project. The turnkey contract covers the supply and supervision of erection of turbines, governing systems, spherical valves, butterfly valves, generators, static excitation system, bus ducts, computerised power plant control and monitoring systems and 400 kv GIS and cables.

The project is being built by JVPL on build-own-operate basis and is one of the few large IPPs being set up in India in the hydro sector. The civil works for the project are already in an advanced stage.

The project will be managed by Alstom's Hydro Power Segment in France, equipment and components being supplied from the company's manufacturing facilities in Grenoble and Belfort, France, and also from India. The project is scheduled for commissioning in December 2006.

For the third quarter ended 31 December 2002, Alstom Power posted a massive rise of 410% in its net profit to Rs 7.60 crore on a 29.6% fall in total income to Rs 92.75 crore.