Power Mech Projects Wins ₹970 Crore Order from Vedanta Power for 5-Year O&M Contract
Power Mech Projects Limited has secured a major ₹970 crore order from Vedanta Power Limited for the end-to-end operation and maintenance (O&M) of its 2×600 MW Sakti Thermal Power Plant in Chhattisgarh.
The company disclosed the order on September 9, 2026, in a filing with the stock exchanges.
₹970 Crore Vedanta Power Contract
The contract has been awarded by Vedanta Power Limited’s Sakti Thermal Plant, a coal-based thermal power plant located at Singhitarai village in Sakti district, Chhattisgarh.
Power Mech Projects will undertake the end-to-end operations and maintenance of the 2×600 MW thermal power facility.
The total contract value is ₹970 crore, excluding GST, comprising:
- ₹890 crore basic contract value
- ₹80 crore provision for additional services
The contract is scheduled to be executed over a period of 60 months, or five years, from the date of issuance of the Letter of Intent (LOI) or order confirmation.
What Work Will Power Mech Projects Undertake?
The order covers comprehensive operations and maintenance services for the 1,200 MW coal-based thermal power plant.
An end-to-end O&M contract typically involves responsibility for maintaining plant operations and supporting the availability and efficient functioning of the generating units.
For Power Mech Projects, the contract provides a multi-year revenue opportunity from its power-sector operations and maintenance business.
Why the Order Is Important for Power Mech Projects
The ₹970 crore contract is significant because it combines large order value with a five-year execution period.
Unlike a short-duration construction order, a long-term O&M contract can provide greater revenue visibility over the contract period.
The company will also be responsible for operating and maintaining a large 1,200 MW thermal power facility, strengthening its presence in the power generation O&M segment.
Impact on Power Mech Projects’ Order Book
The order adds ₹970 crore to Power Mech Projects’ business pipeline, subject to the terms and execution of the contract.
The five-year duration provides the company with visibility for future revenue from the project. The additional ₹80 crore provision for services could provide further revenue opportunity if those services are utilised.
Investors should, however, distinguish between the total contract value and annual revenue recognition, as the ₹970 crore will be recognised over the contract period based on the applicable accounting and contractual terms.
No Related-Party Transaction
Power Mech Projects stated that the order has been awarded by a domestic entity and that neither the promoter/promoter group nor group companies have any interest in the awarding entity.
The company also confirmed that the contract does not fall under related-party transactions.
Power Mech Projects Stock: What Investors Should Watch
Following the order win, investors may track:
- Growth in Power Mech Projects’ order book.
- Revenue contribution from the Vedanta Power contract.
- Execution and operating margins of the O&M business.
- New orders from thermal and power-generation companies.
- Additional opportunities in long-term O&M contracts.
- Cash flows generated from large multi-year contracts.
Investor Takeaway
Power Mech Projects has secured a ₹970 crore, five-year O&M contract from Vedanta Power for its 2×600 MW Sakti Thermal Power Plant in Chhattisgarh.
The order consists of a ₹890 crore basic value and ₹80 crore provision for additional services, excluding GST.
The combination of a sizeable contract value and 60-month tenure makes this a meaningful order win for Power Mech Projects, potentially improving revenue visibility over the medium term.
For investors, the key factors to monitor will be execution, margins, cash generation and further order inflows from the power and infrastructure sectors.