Why thorium?
It is abundantly available in India. It is outside the purview of the International Atomic Energy Agency. And India has the second-largest deposits of thorium. Thorium Power has already signed an agreement with the Abu Dhabi government for a series of plants. Thirty years from now, Abu Dhabi won’t be dependent on hydrocarbons at all. It is expected to be approved by the US authorities by the end of the year. Many other companies have been trying, but they are way behind.
In which regions would the venture function?
Middle East, South Asia and Southeast Asia.
How long do you think before you can get going in India?
I guess 24-36 months.
How long would the construction of a plant take?
Three years. It should not take more than five years.
What would the capacity be?
It would be in blocks of 1,200-2,000 mw.
Where will you begin work first?
In Abu Dhabi, we expect to start work on the plants by 2012.
Coming back to margins, is there a distinct upside to margins because of the caving-in of input costs?
In this environment, the first thing I have to ensure is I have a good deal flow. Yes, I do have a good order flow. Then I have to ensure margins are good. Our outlook is good. There will of course be a one-off project (that’s a hit or a miss). I tell analysts we are not a quarter-to-quarter company. We are a project company and we are building an institution.
There were rumours about your company in the stock market…
People shorted our shares ... there is an underground cartelisation. The market is spooked by rumours. An analyst called me the other day and asked whether one of my directors had refused to sign the balance sheet. The other rumour was that we are another Satyam (Computer Services) in the making because we are a high-growth company. Hello, where is the connection? The market is not going to give you capital in the next 2-3 years. They have crashed the market capitalisation from where it was to where it is, all of it based on some spooky rumours. As an entrepreneur, you want to focus on your business, your projects. You don’t want calls from analysts based on some rumours. How many times has the world written the obituary of the Ambanis, Mittals and Ruias? It is when you stay focused on your business that you emerge out of it. An entrepreneur can have only so much of a thick skin. Why do I need all this crap? Let me take my company private. Frankly, I think in the next one year, a few companies will be taken private. Whether Punj Lloyd will be one of them, I don’t know. But it is a tempting thought.
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