SEPC Wins ₹854.57 Crore SAIL Contract for IISCO Steel Plant Expansion: A Major Boost to Its EPC Order Book

SEPC Limited has secured a significant engineering, procurement, and construction (EPC) contract from Steel Authority of India Limited (SAIL) – IISCO Steel Plant (ISP), Burnpur, strengthening its presence in India’s industrial infrastructure sector.

The company has received a Letter of Acceptance (LoA) for the Pellet Plant  (BOP), including Civil & Structural works (Pellet Package-2), as part of SAIL’s 4.08 million tonnes per annum (MTPA) crude steel expansion project at Burnpur, West Bengal.

With a total contract value of ₹854.57 crore, this order represents one of the largest project wins for SEPC in recent times and further enhances its order book.

SEPC Receives ₹854.57 Crore Letter of Acceptance

In a regulatory filing dated August 5, 2026, SEPC informed the stock exchanges that it had received the Letter of Acceptance from SAIL – IISCO Steel Plant, Burnpur.

The project involves:

• Pellet Plant  (BOP)
• Civil engineering works
• Structural works
• Pellet Package-2
• Part of the 4.08 MTPA Crude Steel Expansion Project

The LoA was issued on August 4, 2026, following SAIL’s competitive tendering process.

Contract Value

The total project value stands at:

₹854.56 crore (approximately ₹854.57 crore)
(Net of Input Tax Credit)

This sizeable contract significantly strengthens SEPC’s execution pipeline and provides long-term revenue visibility.

Project Completion Timeline

According to the Letter of Acceptance:

• Project execution period: 32 months
• The contract becomes effective on:
  
  • the date of signing the contract, or
  • 30 days from the Letter of Acceptance, whichever is earlier.

The timeline provides SEPC with nearly three years to complete the engineering and construction work.

What Does the Project Include?

The awarded package covers the complete Pellet Plant BOP  works required for the pellet plant expansion.

Major responsibilities include:

• Civil construction
• Structural fabrication and erection
• Mechanical support infrastructure
• Associated engineering works
• Complete execution as per SAIL’s technical specifications

The work forms an important component of SAIL’s expansion program aimed at increasing crude steel production capacity at the IISCO Steel Plant.

Competitive Tender Process

The contract was awarded after a detailed bidding and negotiation process.

The selection process included:

• Tender issued in October 2025
• Corrigendum issued in November 2025
• Technical evaluation
• Commercial negotiations
• Price revisions
• Final negotiated offer submitted by SEPC in June 2026

Following the evaluation, SAIL issued the Letter of Acceptance to SEPC.

Performance Bank Guarantee

As per the contract conditions, SEPC will furnish a Performance Bank Guarantee (PBG) of approximately:

₹47.58 crore

The guarantee must be submitted within 30 days of signing the contract.

Payment Authority

The project payments will be handled by:

Project Finance
SAIL – IISCO Steel Plant, Burnpur

An appointed Project Manager from SAIL will supervise execution and coordination throughout the project.

No Promoter Interest

SEPC clarified in its regulatory filing that:

• The contract has been awarded by a domestic government-owned entity.
• Neither the promoter nor the promoter group has any interest in SAIL concerning this transaction.

This confirms that the order has been secured through the normal competitive bidding process.