Power Mech Projects makes 52-week high on bagging project from CCL worth Rs 9,294 crore

As per company’s management, the project will add more than Rs 400 crore annually to its top line.

Power Mech Projects Limited has made a new 52-week high of Rs 767.30 today after it won a mine development & operation (MOO) project from Central Coalfields Limited (CCL), a subsidiary of Coal India Limited, aggregating to Rs 9,294 crore over the contract period. 

The concession period is of 25 years including 2 years of development with an option of extending the contract for a period of another 10 years with both the parties' consent. With this, the total contract period will extend up to 35 years. 

The MOO contract will primarily comprise of mine infrastructure development, removal of overburden and extraction of coking coal, processing, crushing & transportation of coal up to washery of CCL, carrying out R&R activities and any other activities incidental to mining as per the project document at Kotre Basantpur Pachmo OCP located in Ramgarh & Bokaro districts (Jharkhand). The project has a total coal extraction capacity of approximately 105 million MT with an annual capacity of 5 million MT while overburden removal during the project period is over 539 MBCM. 

The project has been awarded to a consortium of Power Mech Projects Ltd and AMR India Ltd wherein, Power Mech is the consortium leader with 74 per cent equity stake while AMR India will hold a 26 per cent stake. A special purpose vehicle (SPV) i.e. KBP Mining Pvt Ltd has been formed to undertake the project. The SPV will have material handling expertise of Power Mech in the project development along with the technical expertise of AMR India in greenfield mining project development. 

As per company’s management, the project will add more than Rs 400 crore annually to its top line. 

On Monday during the morning session, the stock of Power Mech surged 14.8 per cent, making a 52-week high of Rs 767.30 from its previous close of Rs 668.10 on BSE.