TNEB Tender Update

RNS Number : 0990J

Cyan Holdings Plc

02 August 2012

 



Cyan Holdings plc

("Cyan" or the "Company")

Update on TNEB tender

·    Cyan informed that only two companies have passed CPRI testing, both of which are Cyan partners

·    TNEB has invited remaining bidders to resubmit meters

·    Two further Cyan partners have confirmed they will continue with pilot installation and resubmit CPRI testing

Cyan Holdings plc (AIM:CYAN.L), the integrated system and software design company delivering mesh based flexible wireless solutions for utility metering and lighting control, today provides further information regarding the status of the Tamil Nadu Electricity Board (TNEB) Automatic Meter Reading tender of 1.5 million units. TNEB plan to replace 18 million meters and this is the first tender as part of the program.

On 14 June 2012, Cyan provided an update on the TNEB tender stating that Cyan had been informed that the 500 unit pilots would have commenced by the end of the first week in July and that the Central Power Research Institute, India (CPRI) report was expected by the end of June. Whilst TNEB, and the meter manufacturers who are bidding on this tender, have not been able to achieve this timeline, Cyan's competitive position in the tender remains very strong.

Cyan has now been informed that the CPRI has completed its testing on all the meters submitted, as per the specification laid down by TNEB. The result of the testing is that only two companies have passed, both of which are Cyan partners.

These Cyan partners have already completed site surveys and have told Cyan that they will proceed with the 500 unit pilot installations in mid-August at Trichy (Tiruchchirappalli), in the State of Tamil Nadu. Furthermore, one of these Cyan partners has already installed and demonstrated a number of working meters to TNEB as part of a pilot readiness process.

TNEB has confirmed that the all participants whose units who did not pass the CPRI testing can resubmit meters, for this tender and future tenders, and that this re-testing process will run in parallel with the pilot installations.

Cyan understands however that due to the urgent demand to install meters in the state of Tamil Nadu, TNEB will start negotiations for awarding bids in September with a view to issuing purchase orders around October / November.

Both remaining Cyan partners have confirmed to Cyan that they will resubmit units and continue to work towards installing pilots in Trichy (also with a target start date of mid-August).

As the substantial power grid breakdowns this week demonstrate, India's energy supply & distribution shortfalls are becoming a significant problem and there is a strong drive to accelerate the modernisation program that is being put in place with government funding. More information on available funding and drawn amounts (disbursements) can be obtained from the APDRP official website. Please note all amounts shown are in INR, and in Crore Rupees (1 Crore = 10,000,000).

http://www.apdrp.gov.in/Forms/Summar_Sanctioned_Projects_Part_B.aspx

John Cronin, Executive Chairman of Cyan commented: "Whilst it is frustrating that the TNEB tender has experienced a further delay of around six weeks, we remain very confident of our competitive position on this tender. We are pleased that the two meter manufacturers who passed the CPRI tests first time were both Cyan partners and that two further Cyan partners have told us that they will submit to CPRI for retesting and will install pilots in parallel. Cyan continues to support all Cyan partners, on the ground in India as well as from Cambridge, to ensure that the CyLec technology is demonstrated successfully to TNEB during the pilot installations. The recent power grid breakdowns in India serve to underline the pressing requirement for these upgrades to the consumer network and the Board is confident that the TNEB tender process will continue to progress."

Enquiries:

Cyan Holdings plc John Cronin, Chairman www.cyantechnology.com	Tel: [phone]
Cenkos Securities plc NOMAD and Joint Broker Stephen Keys / Adrian Hargrave	Tel: [phone]
XCAP Securities plc Joint Broker Jon Belliss / Adrian Kirk	Tel: [phone]
Newgate Threadneedle Financial PR Caroline Evans- Jones / Guy McDougall	Tel: [phone]

About the TNEB Tender

TNEB is one of the largest electricity distributors in India. In November 2011, it published a tender for the supply of 1.5 million meters as part of its consumer network upgrade programme. This represents the first phase in what is anticipated to be a total upgrade programme of 18 million meters.

About Cyan

Cyan is an integrated system design and software company delivering mesh based flexible wireless solutions for utility metering and lighting control. The Company has been listed on London's Alternative Investment Market (AIM) since 2005. Cyan's Headquarters are in Swavesey, Cambridge, UK. For more information, please visit www.cyantechnology.com.

CyLec

Cyan's CyLec technology provides a complete control and communication network including user interface. CyLec offers point-to-point and mesh network solutions for metering applications. CyLec is a trademark of Cyan Technology Ltd.

CyLux

Cyan's CyLux technology provides a complete control and communications network including user interface. CyLux is a control system allowing lighting manufacturers to build and sell RF controlled street and tunnel lighting. CyLux is a trademark of Cyan Technology Ltd.

 

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