Shares of Power Mech Projects Ltd. experienced a notable surge, climbing as much as 3 percent in early trading on Wednesday. This uptick followed the announcement that the company had secured a significant order valued at Rs 970 crore from Vedanta Power Ltd.
Major Operations and Maintenance Contract Awarded
The contract, detailed in an exchange filing on September 9, involves Power Mech Projects providing comprehensive end-to-end operations and maintenance (O&M) services for Vedanta Power's Sakti Thermal Plant. This facility, located in the Sakti district of Chhattisgarh, is a 2x600 MW thermal power plant.
The total value of the order is specified at Rs 970 crore, which includes a basic order value of Rs 890 crore, with an additional provision of Rs 80 crore for supplementary services, excluding Goods and Services Tax (GST).
Contract Details and Market Reaction
Classified as an operations and maintenance order, the contract is slated for execution over a period of 60 months, commencing from the date the Letter of Intent (LOI) or order confirmation is issued. Power Mech Projects also confirmed that this is a domestic contract awarded by an Indian entity, and there are no related-party transactions involved, as promoters or promoter group companies hold no interest in Vedanta Power.
Following the news, Power Mech Projects shares opened at Rs 2,418.75 and quickly touched a high of Rs 2,485.90, reflecting a gain of approximately 3 percent over its previous close of Rs 2,412.55. The stock was trading around Rs 2,444.30, up 1.32 percent, later in the session.
About Vedanta Power's Sakti Thermal Plant
Vedanta Power's Sakti Thermal Plant is a substantial 1,200 MW coal-based power generation facility. It comprises two 600 MW units; one unit is currently operational, while the second unit is actively under construction. Power Mech Projects' role will be crucial in ensuring the efficient and continuous operation of this significant energy asset.