Hyderabad, 31^st July 2023: Power Mech Projects Limited, one of the leading industrial services and construction Company providing versatile and comprehensive services in power and infrastructure sector, has been awarded a Mine Development & Operation (MDO) project, Tasra OCPlocated inJharia Coal Fields, Dhanbad, Jharkhand, by Steel Authority of India Ltd 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.

Commenting on the project award, Mr. Sajja Kishore Babu, Chairman and Managing Director said, “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 FY 24 onwards. This project can add peak turnover of around Rs. 1,200 crores plus escalation annually. With the revenue coming in from both the MDO 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.

India is majorly dependent on costly import for meeting its coking coal requirement and Tasra is another important step for SAIL and our nation to meet the growing demand of coking coal. KBP and Tasra MDO’s together will generate 9 MTPA when the peak capacities of the respective mines are achieved and the coking coal extracted through these mines will definitely be an inexpensive alternative to the coking coal which the Country is currently importing and will save forex outflow.

This project is a strategic step in forward integration in the Company’s activities, utilizing the technical know-how along with project implementation capability.PC Patel’s technical expertise along with PMPL’s core capabilities in the field of EPC contracts, plant installation, civil & structural works, material handling, infrastructure construction, and project management coupled with operation & maintenance expertise comes in handy. PMPL has already established substantial in-house capability in executing large-capacity material handling contracts and this experience will greatly help in the overall development of the project.

Foreseeing growth, expansion, and diversification, management has started identifying relevant talent and drawing them from reputed organizations. The Company has equipped itself in meeting the demands in executing mega and complex projects smoothly, keeping quality, safety, and timeline.”