Power Mech Projects bags Rs. 30,438 Crore Mine Development & Operation Project from SAIL
Biznextindia : Power Mech Projects Limited, one of the leading industrial services and construction Company providing versatile and comprehensive services in power and infrastructure sector has bagged a major contract from Steel Authority of India Ltd (SAIL). The company has been awarded a Mine Development & Operation (MDO) project, Tasra OCP located in Jharia Coal Fields, Dhanbad, Jharkhand for an estimated value of Rs. 30,438 Crores over the contract period.
The MDO contract will primarily comprise of mine infrastructure development, removal of overburden and extraction of coking coal, crushing, transportation, setting up coal washery of 3.5 MTPA capacity, supply of steel grade coking coal to SAIL, carrying out R&R activities and other activities incidental to mining as per the project document. The project has total coal extraction reserves of 96.78 MT with an annual capacity of 4 MTPA and over burden removal during the project period is over 535.29 MBCM. The concession period of the mine is 28 years including two years of development period.
The project has been awarded to a consortium of Power Mech Projects Limited and PC Patel Infra, wherein PMPL is the consortium leader with 74% equity stake and PC Patel Infra will hold 26% stake. A Special Purpose Vehicle (SPV) will be formed to undertake the project. PC Patel has been in the mining sector for over a couple of decades and has rich experience in handling different kinds of mining contracts.
‘This project will further strengthen our robust order book and enable the Company to diversify its order book which is in line with its strategy to have an optimum mix between power and non-power segments. This mine has all statutory approvals in place and it is a ready to mine project. The revenue booking can be started from FY24 onwards. This project can add peak turnover of around Rs. 1,200 crores plus escalation annually. With the revenue coming in from both the MOO Projects along with the existing operation & maintenance (O&M) business, we expect to witness sustainable growth both in top and bottom lines in the future for a longer period.