Power Mech Projects Ltd’s (PMPL) shares surged 10 per cent as the company bid for a Mine Development and Operation Project (MOO) from the Steel Authority of India Ltd. (SAIL). The contract, estimated at Rs 30,438 crore, involves the Tasra Open Cast Project (OCP) in Jharia Coal Fields, Jharkhand, with a duration of 28 years, including two years for development. After securing the KBP MOO Project in June 2021, PMPL has now won its second MOO contract.
The newly acquired MOO contract encompasses various mining activities, such as mine infrastructure development, coking coal extraction, crushing, transportation, and setting up a coal washery of 3.5 MTPA capacity. Additionally, the company will supply steel-grade coking coal to SAIL and carry out rehabilitation and resettlement activities.
The project possesses substantial reserves, with a total coal extraction of 96.78 mt and an annual capacity of 4 MTPA. The consortium of Power Mech Projects Ltd and PC Patel Infra Pvt Ltd will execute the project, with PMPL leading the consortium with a 74 per cent equity stake, and PC Patel Infra holding a 26 per cent stake.
Shares of the company went up by 10 per cent to Rs 4,609 at 10:40 a.m. on BSE.