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.

Rajesh Power Services Limited , a prominent player in the power services sector, has announced a significant business development. The company has secured a substantial contract worth ₹61.53 crore from Paschim Gujarat Vij Company Limited (PGVCL), marking a notable achievement in its operations.

Contract Details

The contract, awarded by PGVCL, involves a turnkey project for the supply, installation, testing, and commissioning of 11 KV Medium Voltage Covered Conductor (MVCC) in the Porbandar Circle. This project is part of the Kisan Suryodaya Yojana (KSY) Scheme, aimed at enhancing the power infrastructure in the region.

Project Scope and Timeline

The scope of work for Rajesh Power Services includes:

• Supply of equipment and materials
• Installation of the 11 KV Medium Voltage Covered Conductor
• Testing of the installed systems
• Commissioning of the entire setup

The company is expected to complete this comprehensive project within a timeframe of 9 months, demonstrating its capability to handle large-scale power infrastructure projects efficiently.

Financial Impact

This contract represents a significant addition to Rajesh Power Services' order book. The ₹61.53 crore deal is expected to have a positive impact on the company's financial performance in the coming quarters, potentially boosting its revenue and market position in the power services sector.

Strategic Importance

Securing this contract from PGVCL, a state-owned power distribution company, underscores Rajesh Power Services' growing reputation and capabilities in the power infrastructure domain. It also aligns with the government's initiatives to improve rural electrification and agricultural power supply through schemes like Kisan Suryodaya Yojana.

Company's Disclosure

In compliance with regulatory requirements, Rajesh Power Services has made the necessary disclosures to the stock exchanges. The company confirmed that this order was received in the normal course of business and does not involve any related party transactions.

Rajesh Power Services Limited continues to strengthen its position in the power services sector with this latest contract win, showcasing its expertise in handling critical infrastructure projects in the energy domain.