Power Mech Projects-PC Patel Infra Consortium Secures 30,000 Cr. Mine Project from SAIL
Power Mech Projects Ltd. (PMPL) in a consortium with PC Patel Infra Pvt. Ltd., has secured a Mine Development & Operation (MDO) project from Steel Authority of India Ltd. (SAIL). The estimated cost of this project is Rs. 30,438 crore.
PMPL communicated this order win in its press release dated 31st July 2023.
PMPL-PC Patel Infra Consortium Awarded Tasra Open Cast Project in Jharkhand
PMPL-PC Patel Infra consortium has been awarded this MDO project for Tasra Open Cast Project (OCP), which is situated in Jharia Coalfields, Dhanbad, Jharkhand.
PMPL owns 74% equity in the aforementioned consortium while PC Patel Infra holds the remaining 26% stake.
Scope of Work in the Project
The awarded project consists of development of mine infrastructure at the Tasra OCP. Moreover, since the emphasis of this project is on supplying SAIL with Steel grade coking Coal, the scope of work includes processes such as extraction, crushing, and transportation of coal for the contract period. A washery of 3.5 Million Metric Tonne Per Annum (MMTPA) capacity will be set up by the PMPL-PC Patel Infra JV for the extracted Coal. Resettlement and Rehabilitation (R&R) activities pertaining to this mining project will also be carried out by the PMPL-PC Patel Infra consortium.
Tasra OCP Expected to Add 1,200 Cr. to Company’s Turnover, Strengthen Order Book
Mr. Sajja Kishore Babu, Chairman and Managing Director of PMPL, added, “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”.
Tasra OCP is the second Mine Development & Operation contract that PMPL has secured after the Kotre Basantpur Pachmo (KBP) project, which the company had secured in a consortium with AMR India in June 2021.
Mr. Sajja Kishore Babu further said that this order win is a significant step towards strengthening PMPL’s order book, and will help the company attain an optimum mix of power and non-power sector projects in its portfolio. For the 2022-23 financial year, PMPL reported order inflow of Rs. 8,479 crore. Out of the total volume of orders secured in FY-23, 88.1% were secured from the power sector.
Tasra OCP Expected to Reduce Coking Coal Imports
Coking coal is a key raw material in the Steel industry, and India imported 54.46 Million Tonne of Coking Coal in FY-23. Tasra mines have reserves of about 96.78 Million Metric Tonnes (MMT), and the Tasra OCP is capable of yielding about 4 MMTPA of Coking Coal. While there still remains an overall deficit in the domestic production-to-import ratio for Coking Coal, Tasra OCP is expected to reduce India’s dependence on imports.
Commenting on the matter, Mr. Babu said, “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”.
About Power Mech Projects Ltd.: Hyderabad-based Power Mech Projects Ltd. was founded in 1999 by Mr. S.K Babu. The company provides services such as EPC works, testing, commissioning, Operations, and Maintenance (O&M), overhauling, etc. for projects in the power and non-power sectors. The company reported a turnover of Rs. 2,710.48 crore for FY-23.
About P.C Patel Infra Pvt. Ltd.: P.C Patel Infra Pvt. Ltd. is based in Gujarat, and was established in 1994. The company provides mining services such as overburden removal and other excavation work.