Power Mech Projects has secured a Rs 327.35 crore contract from Vedanta Aluminium for the operation and maintenance of a coal-fired power plant in Odisha. This 48-month service deal bolsters the company's recurring revenue stream through a long-term engagement.
Power Mech Projects Secures Rs 327.35 Crore Vedanta Contract
Contract Value: Rs 327.35 crore (excluding GST).
Contract Tenure: 48 months for O&M services.
Reader Takeaway: Recurring O&M income enhances stability; watch for execution efficiency over the 48-month contract period.
What just happened
Power Mech Projects Limited has been awarded a major operation and maintenance (O&M) contract by Vedanta Aluminium Metal Limited. The project involves end-to-end maintenance of a 130 MW coal-fired co-generation power plant and the balance of plant (BOP) for a 90 MW unit, both located in Lanjigarh, Odisha.
Why this matters
This order represents a shift toward more predictable, service-based revenue. Unlike large EPC projects that rely on capital-heavy execution phases, O&M contracts provide steady cash flow for the duration of the 48-month term. This win helps the company build a stronger, long-term recurring income model, improving revenue visibility for investors.
What changes now
With the order secured, Power Mech Projects adds a substantial service engagement to its order book. The project is strictly a third-party commercial transaction, as the company confirmed it is not a related-party deal, ensuring clear financial accounting at arm's length.
What to track next
Shareholders should look for similar service-oriented contract wins in the industrial power sector, as these improve the overall quality of the order book. Future updates on project operational milestones and revenue recognition will be critical to assessing margin performance over the next four years.