New Delhi, Dec 30, 2023: Power Mech Projects, a leading player in the Indian infrastructure and mining space, has secured a colossal order windfall worth Rs 2,192.41 crore ($261 million), sending its stock price skyrocketing and igniting optimism for its future growth trajectory.
This bumper deal encompasses both revival and operations & maintenance (O&M) services for a coal-fired power plant in Andhra Pradesh, along with a lucrative riverbed mineral mining contract across four northern states.
The headline deal involves a five-year contract with Meenakshi Energy Ltd. Power Mech will breathe new life into the Thamminapatnam plant, located in Tirupati district, by reviving and subsequently overseeing O&M for its four units – two 150 MW units in Phase 1 and two 350 MW behemoths in Phase 2. This Rs 674.81 crore contract translates to over $81 million, a significant boost for Power Mech’s power sector expertise.
The remaining Rs 1,517.60 crore ($181 million) order comes from the vast riverbeds of Dehradun, Haridwar, Udham Singh Nagar, and Nainital districts.
Power Mech will mine valuable riverbed minerals through a dedicated Special Purpose Vehicle, further diversifying its portfolio and tapping into the burgeoning demand for these resources.
News of the mega-orders sent Power Mech’s stock soaring, with investors lapping up the company’s robust order book and promising growth trajectory.
Analysts predict continued momentum in the coming quarters, buoyed by these high-value contracts and Power Mech’s proven track record in both power and mining sectors.
This double-pronged deal signifies Power Mech’s strategic focus on both reviving existing infrastructure and tapping into new resource streams.
The company’s expertise in both O&M and mining positions it as a key player in India’s infrastructure development drive, with the potential to unlock further lucrative opportunities in the future.