PNC Infratech Limited , a prominent infrastructure company, has secured a significant contract from South Eastern Coalfields Limited (SECL). The company has emerged as the lowest bidder for a major mining services project valued at ₹2,956.66 crore, exclusive of GST.

Project Details

The project, awarded by SECL, involves "Handling, Transport and Other Mining Services - Hiring of HEMM for OB Removal and Coal Extraction by Surface Miner and Loading and Transportation of Extracted Coal to different destinations at Gevra OCP Expansion Project" in the state of Chhattisgarh. This comprehensive contract encompasses various critical mining operations, highlighting PNC Infratech's expertise in the sector.

Contract Specifics

PNC Infratech has been awarded the contract for ₹2,956.66 crore, positioning it as the L1 (lowest) bidder. The financial bids for the project were opened recently, marking a significant milestone in the company's pursuit of this substantial infrastructure opportunity.

Contract Duration and Scope

The project is set to be executed over a period of five years. This long-term engagement underscores the project's scale and importance in the mining sector. The contract involves:

• Handling, transport, and mining services
• Hiring of heavy earth moving machinery for overburden removal
• Coal extraction by surface miner
• Loading and transportation of extracted coal to different destinations at Gevra OCP Expansion Project in Chhattisgarh

Market Impact

This development is likely to be viewed positively by investors and industry observers, as it demonstrates PNC Infratech's competitive edge in securing large-scale projects. The company's success in winning this significant contract reflects its operational efficiency and strategic capabilities in the infrastructure sector.

Regulatory Compliance

In line with regulatory requirements, PNC Infratech has promptly disclosed this information. The company has affirmed that the promoters have no interest in the awarding entity (SECL) and that the contract does not fall under related party transactions.

As the infrastructure sector continues to play a crucial role in India's economic growth, PNC Infratech's involvement in this large-scale mining services project is expected to contribute significantly to its order book and future revenue streams.

Investors and market participants will likely keep a close watch on the execution of this project and its potential impact on PNC Infratech's financial performance in the coming years.

PNC Infratech Limited has emerged as one of the lowest bidders in a significant tender floated by NHPC Limited for a 1,200 MW solar power project with 600 MW/2400 MWh energy storage. The infrastructure development company has been awarded a substantial 300 MW solar power project with an integrated 150 MW/600 MWh energy storage system.

Tender Details

PNC Infratech has secured a 300 MW Inter State Transmission System (ISTS) connected solar power project, coupled with a 150MW/600MWh Energy Storage System (ESS). This project is part of a larger tender by NHPC Limited for setting up 1200 MW of ISTS-connected solar power projects with 600MW/2400MWh energy storage systems across India.

Competitive Bidding Process

The company emerged victorious through a Tariff Based Competitive Bidding (TBCB) process. The final selection was made via an electronic reverse auction mechanism. PNC Infratech's competitive edge was evident in its quoted price of Rs. 3.13 per kilowatt-hour, which secured its position as one of the lowest bidders.

Project Execution Timeline

According to the terms of the agreement:

1. The Scheduled Commencement of Supply Date (SCSD) is set at 24 months from the effective date of the Power Purchase Agreement (PPA).
2. The PPA's operational period is slated for 25 years from the SCSD.

Significance of the Project

This award represents a significant step for PNC Infratech in the renewable energy sector, particularly in large-scale solar projects with energy storage capabilities. The integration of a substantial energy storage system alongside the solar power project showcases the company's commitment to providing stable and reliable renewable energy solutions.

Company's Disclosure

In compliance with regulatory requirements, PNC Infratech has officially informed the stock exchanges about this development. The company has confirmed that neither the promoter group nor any group companies have any interest in NHPC Limited, the entity awarding the contract.

This project aligns with India's growing focus on renewable energy and the integration of energy storage solutions to address intermittency issues associated with solar power generation. For PNC Infratech, it marks a significant expansion in its portfolio and demonstrates its competitiveness in the evolving energy sector.

Market Response

Following the announcement, PNC Infratech's stock saw a positive market response, rising 5% to Rs 327.00. This increase reflects investor confidence in the company's expansion into the renewable energy sector and its potential for future growth.