₹970 Crore Vedanta Deal
Power Mech Secures ₹970 Crore Vedanta Contract for Chhattisgarh Thermal Plant
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Key Points
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The 1,200 MW Sakti plant consists of two 600 MW units; one unit is operational, while the second remains under construction.
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Power Mech Projects’ outstanding order book stood at ₹55,398 crore at the end of Q1 FY27, providing additional execution visibility alongside the new Vedanta contract.
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The contract implies an average revenue contribution of roughly ₹194 crore a year over five years, although this is a derived estimate rather than a company-stated annual figure.
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The Sakti Thermal Plant is located in Singhitarai village in Chhattisgarh’s Sakti district.
Power Mech Projects has won a ₹970 crore operations and maintenance contract from Vedanta Power for a 1,200 MW thermal plant in Chhattisgarh. The five-year deal, which includes a base value of ₹890 crore plus ₹80 crore for additional services, will run for 60 months starting from the Letter of Intent. Equitypandit reported that Power Mech shares climbed to ₹2,493.40 on the news.
The Sakti Thermal Plant consists of two 600 MW units located in Singhitarai village in Chhattisgarh's Sakti district. One unit is operational while the second remains under construction. The contract will deliver roughly ₹194 crore in average annual revenue over five years and strengthens Power Mech's visibility in the power-plant services market.
A Major Win for Power Mech's Order Book
Power Mech Projects' order book stood at ₹55,398 crore at the end of Q1 FY27, according to Business Upturn. The new Vedanta contract adds meaningful recurring revenue on top of this existing pipeline. This deal strengthens the company's five-year execution visibility in India's competitive power-services sector.
Plant Details: Two 600 MW Units in Chhattisgarh
The Sakti Thermal Plant spans 1,200 MW across two identical 600 MW units in Singhitarai village, Chhattisgarh. HDFC Sky confirmed the plant is located in Chhattisgarh state. Currently, one unit generates power while the second unit is still under construction. Power Mech will handle the full operations and maintenance scope for both units once complete.
Stock Market Reaction and Contract Structure
Power Mech shares rose about 3% during trading following the announcement, reaching highs of ₹2,493.40. Investment Guru India reported the stock climbed 1.21% from its previous close of ₹2,412.55 on the BSE. Power Mech clarified that this is not a related-party transaction, as its promoters have no interest in Vedanta Power. The contract's ₹970 crore total breaks down to ₹890 crore base value plus ₹80 crore for ancillary services, excluding GST.
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