Nelco bags contract from ONGC to enhance its communication infrastructure at offshore sites; Stock hits upper circuit

5 Jan 2022 , 02:33 PM

Nelco Limited, India’s leading satellite communication service provider, today announced their contract for a turnkey project from Oil and Natural Gas Corporation (ONGC) worth more than Rs40cr.

The scope of the project entails supply, commission, and maintenance of ONGC’s captive very small aperture terminal (VSAT) based network. This network will be used to enhance the communication infrastructure of ONGC’s Western India offshore sites.

The company stock was in demand on Wednesday and at around 2.15 pm, NELCO Ltd was trading at Rs750.65 per share up by Rs35.7 or 4.99% (5% upper circuit) from its previous closing of Rs714.95 per piece on the BSE.

Nelco will revamp the existing Ku band captive network of ONGC as per their requirement, which will enable voice, and data communication between ONGC’s offshore installations, and onshore locations. The scope of the project includes upgradation of existing Ku band satellite communication infrastructure, as well as upgrading the RF and antenna systems and other necessary electronic systems at all locations. This system will enable connectivity for offshore platforms, drilling rigs, specialized vessels and onshore locations.

The key benefits that ONGC will get from this project will be in terms of more efficient, resilient and reliable network, as well as the capabilities to have differentiated services based on application requirements. Nelco is using state of the art satellite technologies to ensure that the network offers the best quality of services to ONGC for their day-today operations and crew life.

P J Nath, MD & CEO of Nelco said, “Nelco’s vast experience in building and running operations and maintenance of large communication networks will help us in successfully delivering this project. We will be leveraging best-in-class technologies to fully meet the world class communication needs of ONGC,
which is critical to their operations. We are proud to be associated with ONGC for this important project”.

The solution provides integrated satellite-based end to end IP connectivity solution, which will address requirements for existing and upcoming voice and data applications, as well as provide a back-up network for the existing C band satellite network of ONGC.