Power Mech wins order worth Rs 30000 Cr from SAIL

Power Mech wins order worth Rs 30000 Cr from SAIL

Power Mech Wins Order From SAIL

New Delhi: Power Mech Projects Ltd, a renowned industrial services and construction company specializing in power and infrastructure sectors, has secured a significant mine development and operation (MDO) project from the esteemed Steel Authority of India Ltd. (SAIL). The project’s estimated value stands at a staggering INR 30,438 crore, covering the entire contract duration.

The Tasra open-cast project, located in the Jharia Coal Fields of Dhanbad, Jharkhand, will be developed by Power Mech Projects Ltd. The mine holds a concession period of 28 years, including a two-year development phase.

Inclusive of various key components, the order encompasses mine infrastructure development, overburden removal, coking coal extraction, crushing operations, transportation, and the establishment of a coal washery with a capacity of 3.5 million tonnes per annum (MTPA). Additionally, Power Mech will supply SAIL with high-quality steel grade coking coal, undertake resettlement and rehabilitation (R&R) activities, and perform other mining-related tasks as specified in the project document.

With total coal extraction reserves amounting to 96.78 million tonnes and an annual capacity of 4 MTPA, the project’s overburden removal during its course will reach approximately 535.29 million cubic meters (MBCM).

Power Mech Projects, in collaboration with PC Patel Infra, has been awarded the project, with the former serving as the consortium leader, holding a 74% equity stake, while PC Patel Infra possesses the remaining 26%. To execute the project efficiently, a special purpose vehicle (SPV) will be formed.

Sajja Kishore Babu, Chairman, and Managing Director of Power Mech Projects, expressed confidence in the project’s potential to fortify their order book and achieve a balanced mix between power and non-power segments. He emphasized that the project is fully equipped with statutory approvals, ready for mining operations, and anticipates revenue booking to commence from FY24 onwards. With a projected peak turnover of approximately INR 1,200 crore per annum along with escalation, the venture promises substantial growth prospects.

This milestone project assumes great significance for India’s coking coal needs, as it would reduce the nation’s reliance on costly imports. The successful implementation of the Tasra project will enable SAIL to meet the escalating demand for coking coal within the country. The combined efforts of KBP and Tasra MDO’s are expected to generate a total of 9 MTPA once both mines reach their peak capacities, providing an economical alternative to imported coking coal and thereby saving foreign exchange outflow.

For Power Mech Projects, this project signifies a strategic move towards forward integration, leveraging their technical expertise and project execution capabilities in the mining domain.

About Power Mech:

Power Mech Projects Limited is a prominent infrastructure construction company headquartered in Hyderabad, India. With a global presence, the company has earned high acclaim for delivering a wide range of services in the power and infrastructure sectors.

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