Power Mech Bags ₹579 Cr Civil Works Contract from BHEL for Koderma Plant

Power Mech Projects Ltd has received a work order worth ₹579 crore (excluding GST) from Bharat Heavy Electricals Limited (BHEL). The order involves civil, structural, and architectural works for the 2×800 MW DVC Koderma Thermal Power Station (KTPS) Phase-II project in Jharkhand.

As of 12:35 PM on March 24, shares of Power Mech Projects Ltd were trading at ₹2,517.15, up 15.99%, while Bharat Heavy Electricals Ltd was trading at ₹218.16, up 2.93%.

Scope of Work

The contract includes levelling and grading the entire power block area, covering units such as the powerhouse, boiler, ESP, mill, bunker, transformer yard, and flue gas desulphurisation (FGD) unit. Other components include the construction of foundations for fans, chimneys, cooling water pits, turbine generators, and more.

Additional work covers paving roads and walkways, constructing service buildings with parking, and providing infrastructure for compressors, DG sets, CST pump houses, and MRS units. Installation of AC and ventilation ducting, fire protection systems, fencing between the existing and new stations, and development of a customer office are also part of the project.

Utilities

The project also includes setting up restrooms for operation and maintenance (O&M) staff, temporary sheds for construction workers, and leasing land for labour huts. Civil work for sewage lines, low-pressure piping, and fire-fighting systems will also be carried out within the power block and BTG (boiler, turbine, generator) areas. Foundations for rooftop solar systems, switchyard development, pipe racks, and cable racks are also planned.

The duration for completing the contract is 32 months from the date of the Letter of Award (LOA).

Q3 Highlights 

As of December 2024, the company reported an order book of ₹4,242 crore. In Q3 FY24, revenue stood at ₹1,338 crore, up 20.8% year-on-year, while net profit rose 33.3% to ₹82 crore. EBITDA grew to ₹150.9 crore, though the EBITDA margin declined to 11.3% from 12.1% a year ago.

Conclusion

Power Mech Projects Ltd.’s significant work order of ₹579 crore from BHEL for the DVC Koderma Thermal Power Station Phase-II project in Jharkhand represents a substantial boost to its order book and reinforces its position as a key player in the infrastructure and power sector.

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