Power Mech Projects Limited has announced a significant milestone in its business operations, securing a large-scale contract worth over ₹2500 crores from Bharat Heavy Electricals Limited (BHEL). The contract involves Engineering, Procurement, and Construction (EPC) work for the Balance of Plant (BOP) package at the 1 X 800 MW Singareni Super Thermal Power Project, Stage - II, located in Mancherial, Telangana.

Contract Details

Scope of Work

The comprehensive EPC package for the Balance of Plant includes:

• Design and engineering
• Manufacturing, inspection, and testing
• Supply and delivery to the project site
• Civil and structural works
• Construction and erection
• Commissioning and trial runs
• Performance Guarantee (PG) Test
• Annual maintenance until handover
• Training, warranty, and defect liability period

Power Mech Projects will be responsible for the entire process, from initial design to final handover, operating on a Single Point Responsibility basis for the total scope defined in the Balance of Plants as per the scope matrix and battery limit.

Project Significance

This contract represents a substantial addition to Power Mech Projects' order book, potentially boosting the company's revenue and market position in the power sector. The project's scale and complexity underscore the company's capabilities in handling large-scale thermal power projects.

Market Implications

The securing of this significant contract may have positive implications for Power Mech Projects' financial outlook and market perception. Investors and market analysts are likely to closely monitor the execution of this project, as it could impact the company's performance over the next three years.

As the Indian power sector continues to expand to meet growing energy demands, contracts of this magnitude highlight the ongoing investments in thermal power infrastructure. However, it's important to note that the long-term trajectory of such projects may be influenced by India's evolving energy policies and commitments to renewable energy sources.

Power Mech Projects' ability to secure and execute such large-scale projects may position it favorably in the competitive landscape of the power infrastructure sector. Stakeholders will be keen to observe how efficiently the company manages this significant project within the stipulated timeframe of 38 months.

Power Mech Projects Limited, a prominent player in the power and infrastructure sector, has announced a significant new business win, further solidifying its position in the market. The company has secured a substantial contract worth ₹371.00 crore from Mahan Energen Limited (MEL), a subsidiary of Adani Power Limited.

Contract Details

The contract, valued at ₹370.84 crore (excluding GST and BOCW Cess), involves the execution of civil works and erection of prefabricated structural steel for the Boiler Turbine Generator (BTG) Units 1 and 2 at the Mahan Phase-III project. This project is part of MEL's 2 x 800 MW power plant expansion in Singrauli, Madhya Pradesh.

Scope of Work

The comprehensive scope of work for Power Mech Projects includes:

• Execution of civil works
• Erection of prefabricated structural steel for BTG Units 1 and 2
• Construction of the main powerhouse and central control building
• Installation of Electrostatic Precipitator (ESP) and Flue Gas Desulfurization (FGD) systems
• Development of limestone handling system and switchyard
• Various miscellaneous ancillary works

Project Timeline

The contract stipulates a 30-month execution period from the date of issuance of the Notice to Proceed. This timeframe underscores the project's scale and complexity, highlighting Power Mech Projects' capability to handle large-scale infrastructure developments.

Market Impact

This new order is expected to have a positive impact on Power Mech Projects' order book and future revenue streams. The contract's size demonstrates the company's strong market position and its ability to secure high-value projects in the power sector.

Industry Implications

The contract award from an Adani Power subsidiary signifies ongoing investments in India's power infrastructure. It also highlights the continued expansion of thermal power capacity, even as the country pushes for renewable energy sources, indicating a balanced approach to meet growing energy demands.

Power Mech Projects' involvement in this project showcases its expertise in handling complex power plant constructions and its important role in India's energy infrastructure development.