Shakti Pumps Secures ₹654.03 Crore Solar Water Pumping Contract from Karnataka Government
Shakti Pumps (India) Limited has won a ₹654.03 crore contract from Karnataka Renewable Energy Development Limited for 16,780 solar water pumping systems under the PM-KUSUM scheme. The project covers design, manufacturing, supply, installation, and commissioning across Karnataka, with completion required by March 31, 2026. The base contract value is ₹600.58 crores, reaching ₹654.03 crores including GST, marking a significant milestone in the company's renewable energy portfolio.
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Shakti pumps (India) Limited has secured a major contract from the Karnataka government for solar water pumping systems, marking a significant milestone in the company's renewable energy portfolio. The company announced receiving its first letter of award from Karnataka Renewable Energy Development Limited under the PM-KUSUM scheme.
Contract Overview
The comprehensive agreement covers 16,780 stand-alone off-grid DC solar photovoltaic water pumping systems to be deployed across the entire state of Karnataka. The project falls under Component-B of the PM-KUSUM scheme, a government initiative promoting solar-powered agricultural equipment.
| Parameter: | Details |
|---|---|
| Awarding Entity: | Karnataka Renewable Energy Development Limited |
| Number of Systems: | 16,780 units |
| Coverage Area: | Entire state of Karnataka |
| Scheme: | PM-KUSUM Component-B |
| Contract Type: | Domestic |
Financial Details
The contract represents substantial revenue potential for Shakti Pumps, with the total project value structured across different components:
| Financial Component: | Amount |
|---|---|
| Base Contract Value: | ₹600.58 crores |
| GST Component: | ₹53.45 crores |
| Total Contract Value: | ₹654.03 crores |
Project Scope and Timeline
The contract encompasses a comprehensive range of services beyond simple equipment supply. Shakti Pumps will be responsible for the complete project lifecycle, ensuring end-to-end delivery of functional solar water pumping systems.
Key project responsibilities include:
- Design and manufacturing of solar photovoltaic water pumping systems
- Supply and transportation of equipment
- Installation and testing of systems
- Commissioning of operational units
The company must complete all project deliverables on or before March 31, 2026, providing a clear timeline for execution and revenue recognition.
Regulatory Compliance
The announcement was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that neither promoters nor group companies have any interest in the awarding entity, and the contract does not constitute a related party transaction, ensuring arm's length commercial terms.
Strategic Significance
This contract represents Shakti Pumps' continued expansion in the renewable energy sector, particularly in solar-powered agricultural solutions. The PM-KUSUM scheme aims to enhance farmers' income while promoting sustainable agricultural practices through solar technology adoption across India.
Historical Stock Returns for Shakti Pumps
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.02% | -5.52% | -14.02% | -15.06% | -47.60% | +265.49% |
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