Power Mech Projects jumps 20% after bagging SAIL mine contract

Power Mech Projects' share price was up 20%. The company revealed that they had obtained a mine development contract worth Rs 304.38 billion from Steel Authority of India (SAIL).

Power Mech Projects had been awarded the mine development and operation (MOO) project at Jharia Coal Fields, Ohanbad in Jharkhand. The concession period for the mine, which includes two years for development, will be 28 years.

The awarded project includes substantial coal mining reserves of 96.78 MT, with an annual capacity of 4 MTPA. In addition, more than 535.29 MBCM of overload removal is expected during the project period.

A consortium consisting of Power Mech Projects (PMPL) and PC Patel Infra is in charge of the project. PMPL leads the consortium and has a 74% equity stake, while PC Patel Infra has the remaining 26% stake. To carry out the project, a special purpose vehicle (SPV) will also be established.