Shares of Shakti Pumps (India) Ltd. experienced a significant surge, climbing over 12% in early trading today. The boost came after the company announced it had received a Letter of Empanelment from the Maharashtra State Electricity Distribution Company Ltd (MSEDCL) for a substantial project.
Under the new agreement, Shakti Pumps will supply 10,000 off-grid solar photovoltaic water pumping systems across Maharashtra. This initiative falls under the state government's "Magel Tyala Saur Krushi Pump Yojana," which aims to provide solar-powered irrigation pumps for agricultural use throughout the region.
Project Details and Scope
The total value of this order is approximately Rs 235.92 crore, which includes GST. The basic work value, excluding GST, stands at Rs 216.64 crore. Shakti Pumps is tasked with supplying solar water pumping systems in various capacities: 3 HP, 5 HP, and 7.5 HP.
The company's responsibilities for the project are comprehensive, encompassing the design, manufacturing, supply, transportation, installation, testing, and commissioning of these solar pumping systems. The project is expected to be executed within 60 days from the issuance of the work order or Notice to Proceed (NTP).
Market Reaction and Company Context
Following the announcement, Shakti Pumps shares jumped 12.11% to hit a high of Rs 524.90, up from their previous close of Rs 468.20. This positive market reaction highlights investor confidence in the company's expanding role in the renewable energy sector.
This latest empanelment follows a similar contract Shakti Pumps secured in July, also from MSEDCL, for 15,000 off-grid solar photovoltaic water pumping systems valued at around Rs 353.89 crore. Both projects are part of the same Magel Tyala Saur Krushi Pump Yojana, underscoring the company's consistent engagement with Maharashtra's renewable energy initiatives.
Shakti Pumps specializes in manufacturing pumps, motors, variable frequency drives (VFDs), inverters, and related products. Solar pumps constitute a crucial and growing segment of its business operations, aligning with India's push for sustainable agricultural practices.