Jaiprakash Associates Ltd., the flagship of the Rs. 3000 Crores Jaypee Group has signed an agreement with Irrigation and CAD Department of Andhra Pradesh for the Srisailam Left Bank Canal Tunnel Scheme of Alimmineti Madhava Reddy Project (A.M.R.P.) for design and execution of Tunnel 1 and Tunnel 2 including Head regulator at the entrance portal of Tunnel 1 of Srisailam Left Bank Canal Tunnel Scheme of A.M.R.P. from Neelam Sanjeeva Reddy Sagar Project Reservoir (Srisailam Reservoir) in Mahaboobnagar and Nalgonda Districts of Andhra Pradesh.

The value of the contract is Rs. 1925 Crores and the same is to be completed in 60 months. This is the largest single order value contract for any construction company in the country as on date.

Srisailam Left Bank Canal Tunnel Scheme of AMR Project envisages carrying 113.28 cumec of water from Srisailam reservoir to the plains of Nalgonda District, Andhra Pradesh, India through Tunnel – 1 (T-1) of 9.2 m dia (finished) circular and length 43.5 km off-taking from Srisailam reservoir. This tunnel opens into a approach canal which crosses Dindi river across where a balancing reservoir is proposed. Thereafter the waters are to be carried through an open channel and a 9.0 m dia (finished) circular and 7.25 km long tunnel (T-2) before it reaches the plains of drought prone district of Nalgonda.

The first quarter results of the company were impressive with a turnover of Rs.1220 crores (net of Excise Duty) that included an extraordinary income of Rs.360 crores from sale of 180 million shares of its subsidiary Jaiprakash Hydro-Power Limited, Profit after Tax of Rs.414 crores and EPS of Rs.23.44.

The Cement Division of the Company with its expanded capacity also posted impressive growth in both production and dispatch in Q1 with cement production showing a 26% growth and growth in cement dispatch of 20%. The first quarter also saw the full impact of the two Captive Power Plants of 25 MW capacity each, installed in the last financial year, with cost of power declining by 23% resulting in a reduction of variable cost of cement, thereby improving profitability. The cost of power is likely to be in range of Rs. 3/kwh, among the lowest in cement industry.