Rajesh Power Services Limited (RPSL), a key player in the power infrastructure sector, has announced significant business developments that are set to bolster its order book and market position.

New Order Details

RPSL has secured two major contracts in Gujarat:

1. Orders worth ₹182.62 crore from Madhya Gujarat Vij Company Limited (MGVCL)
2. Orders worth ₹95.00 crore for Gas Insulated Switchgear (GIS) substations

MGVCL Contract

• Value: ₹182.62 crore
• Scope: Turnkey contract to convert existing 11kV HT networks to underground cable/MVCC under SI scheme
• Coverage: Jurisdictions of Mehmedabad, Anand, Petlad, and Nadiad under MGVCL
• Timeline: To be executed within 12 months

GIS Substations Contract

• Value: ₹95.00 crore
• Scope: Supply, installation, testing, and commissioning of:
  • 400kV/33kV GIS Substations
  • 66kV/33kV GIS Substations
• Timeline: To be completed within 12 months

Project Scope and Timeline

Both projects have a 12-month execution timeline, demonstrating RPSL's capability to handle multiple large-scale projects simultaneously.

Client and Contract Information

• The MGVCL contract was awarded by a domestic entity and falls under the company's normal course of business.
• The GIS substations contract was awarded by a private company operating in a similar line of business.
• Neither contract involves related party transactions, and the promoter group has no interest in the entities awarding the contracts.

Financial Impact

The total value of the new orders, including taxes, stands at ₹277.62 crore.

Strategic Significance

These orders are significant for Rajesh Power Services for several reasons:

1. Market Presence: The projects strengthen RPSL's footprint in Gujarat, a state known for its industrial growth and power infrastructure needs.
2. Technical Expertise: The orders showcase RPSL's capabilities in both underground cable conversion and advanced GIS substation technologies.
3. Order Book Enhancement: The ₹277.62 crore addition to the order book provides improved revenue visibility.
4. Diversification: The contracts demonstrate RPSL's ability to secure projects from both public sector undertakings (MGVCL) and private entities.

Compliance and Transparency

In line with regulatory requirements, Rajesh Power Services has disclosed these material developments to the BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Rajesh Power Services Limited (RPSL) has clinched a significant contract worth Rs 143.11 crore from Dakshin Gujarat Vij Company Limited (DGVCL), marking a substantial development in the company's project portfolio. The contract entails a comprehensive upgrade of the existing power infrastructure in key areas of Gujarat.

Contract Details

The turnkey contract awarded to RPSL involves the conversion of the existing 11/22kV High Tension (HT) Network to Underground Cable/Medium Voltage Covered Conductor (MVCC) under the System Improvement (SI) scheme. This project will be implemented across three strategic locations:

1. Valsad City
2. Valsad Rural
3. Surat Rural

Project Scope and Timeline

RPSL is tasked with executing this domestic contract within a stipulated timeframe of 18 months. The project's scope underscores the company's capability in handling large-scale power infrastructure upgrades, which are crucial for improving the reliability and efficiency of power distribution networks.

Financial Implications

The contract value of Rs 143.11 crore represents a significant boost to RPSL's order book. This development is likely to have a positive impact on the company's financial performance in the coming quarters, subject to timely execution and project milestones.

Corporate Governance Aspects

In line with regulatory requirements and corporate governance practices, RPSL has confirmed two important aspects of this contract:

1. The promoter group of RPSL has no interest in DGVCL, the entity that awarded the contract.
2. The transaction does not fall within the ambit of related party transactions.

These clarifications ensure transparency and adherence to corporate governance norms, which are crucial for maintaining investor confidence.

Market Implications

This contract win demonstrates RPSL's strong position in the power infrastructure sector and its ability to secure significant projects from state-owned utilities. It also reflects the ongoing investments in upgrading power distribution infrastructure in Gujarat, which could signal potential opportunities for companies operating in this sector.

As Rajesh Power Services Limited embarks on this substantial project, stakeholders will be keenly watching its execution and the potential impact on the company's growth trajectory in the power services segment.