Power Mech Projects has officially informed stock exchanges about the annulment of a significant battery storage tender by West Bengal State Electricity Distribution Company Limited (WBSEDCL). The state utility has rescinded the Letter of Award dated January 08, 2026, previously issued to PM Green Private Limited, a wholly owned subsidiary of the company.

Official Communication Details

The company filed an official intimation with NSE and BSE on March 25, 2026, providing comprehensive details about the tender cancellation. WBSEDCL has annulled the entire tender process for the 250 MW/1000 MWh Standalone Battery Energy Storage System project at Goaltore.

Reasons for Tender Annulment

According to the official communication, the annulment has been attributed to administrative and procedural exigencies arising from circumstances beyond the control of either party. The company has clarified that the decision is not due to any default or non-compliance on the part of the bidder.

The tender cancellation demonstrates that external factors, rather than performance issues, led to the project's termination. WBSEDCL's decision reflects administrative challenges that prevented the project from proceeding as originally planned.

Financial Impact and Securities Release

The tender annulment has resulted in a direct impact on Power Mech Projects' business portfolio and financial position.

The company has confirmed that both the Bid Security and Performance Bank Guarantee submitted by PM Green Private Limited have been released in full, without any deductions or forfeitures. This indicates that the subsidiary met all compliance requirements and the cancellation was purely due to administrative reasons.

Business Implications

The rescission represents a significant setback for Power Mech Projects' expansion into the battery energy storage sector through its subsidiary operations. The cancelled project was part of the growing renewable energy storage market, which utilities are increasingly adopting for grid stability and renewable energy integration.

PM Green Private Limited, as a wholly owned subsidiary, was positioned to execute this major infrastructure project. The tender annulment removes a substantial project from the company's execution pipeline and impacts future revenue projections from the renewable energy storage segment.

Power Mech Projects Limited has successfully secured a major order worth ₹7.10 billion from Adani Infrastructure Management Services Limited, part of the Adani Group. The comprehensive contract involves Operations and Maintenance services including overhauling at a 5x660MW Thermal Power Plant located at Tiroda, Maharashtra.

Contract Specifications

The company announced the receipt of this substantial domestic contract through a regulatory filing under SEBI Master Circular requirements. The order represents a significant addition to Power Mech Projects' order book and demonstrates its capabilities in large-scale power plant operations.

Scope of Work

The contract encompasses KPI-based Operations and Maintenance services including comprehensive overhauling activities at the thermal power facility. The scope covers all essential maintenance operations required to ensure optimal plant performance and reliability over the contract period.

The detailed service specifications are governed by tender documents, clarifications, and various correspondences exchanged between the parties, with later documents taking precedence in case of any ambiguities.

Business Impact

This significant order win strengthens Power Mech Projects' position in the power sector and provides substantial revenue visibility for the next five years. The contract duration from April 2026 to March 2031 ensures steady business operations and cash flow generation.

The company confirmed that this is not a related party transaction and that promoter groups have no interest in the awarding entity, ensuring the deal was conducted at arm's length principles.

Company Profile

Power Mech Projects Limited operates as an ISO certified company (ISO 14001:2015, ISO 9001:2015 & ISO 45001:2018) specializing in engineering and construction services. The company's ability to secure high-value contracts from leading industrial groups demonstrates its technical expertise and market credibility in the power sector.