Shares of infrastructure firm Power Mech Projects Ltd soared 3% on 9 January after the company announced that its wholly owned subsidiary, PM Green Private Ltd, had received a major order from West Bengal State Electricity Distribution Company Ltd (WBSEDCL) to build a 250 MW/1,000 MWh standalone Battery Energy Storage System (BESS) in Goaltore, Paschim Medinipur, West Bengal.

The order is organized on the build-own-operate (BOO) model, with WBSEDCL guaranteeing 100% off-take capacity. Furthermore, a greenshoe option of 250 MW/1,000 MWh is incorporated for the Durgapur Project Ltd (DPL) campus in Durgapur, West Bengal. The total order amount, including greenshoe options, is Rs 3,126 crore (excluding GST).

The scope of work includes the design, financing, engineering, procurement, building, operation, and maintenance of the BESS facilities at both sites. 

The project is anticipated to be commissioned within 18 months of signing the Battery Energy Storage Purchase Agreement (BESPA), followed by a 180-month operation and maintenance period.

The order was issued by a domestic corporation, WBSEDCL, and is not regarded as a related party transaction. The corporation confirmed that neither the promoters nor the group firms have an interest in WBSEDCL.

At 11:30 am, the shares of  Power Mech Projects were trading 1.75% higher at Rs 2,394..80 on NSE.

Ready to invest like a pro? Tradz by EquityPandit equips you with 100+ Free tools and knowledge you need to succeed. Download the Tradz app and gain access to daily stock lists and insightful market analysis and much more!