Safety Controls & Devices Wins Rs 10.15 Crore EPC Order from UPPTCL

Contract Value: Rs 10.15 crore inclusive of GST.
Timeline: Completion within 6 months from Letter of Intent or site handover.

Reader Takeaway: This government order confirms operational growth, though investors should track strict penalty clauses for project delays.

What just happened

Safety Controls & Devices Ltd has been awarded a turnkey Engineering, Procurement, and Construction (EPC) contract by the U.P. Power Transmission Corporation Limited (UPPTCL). The project, valued at Rs 10.15 crore, focuses on capacity enhancement at the 220 kV GIS substation located on Kanpur Road, Lucknow.

Scope of Work

The company is tasked with the complete engineering, supply, erection, and commissioning of one 220 kV GIS bay and one 33 kV GIS bay. Additionally, the contract includes the installation and commissioning of a 60 MVA power transformer, which will be provided by UPPTCL to increase the existing substation's capacity.

Contract Terms and Obligations

The project carries specific performance mandates. Safety Controls & Devices must submit a performance bank guarantee equal to 10% of the contract value within 28 days. The company faces liquidated damages of 0.5% per week for any delays, capped at 5% of the contract value, emphasizing the importance of operational efficiency.

Why this matters

This win underscores the company's capability in securing government-tendered infrastructure projects. It confirms a clean bidding process, as the company explicitly stated that no promoters or directors have an interest in UPPTCL, and the contract was won through competitive e-tendering.

What to track next

Investors should monitor the company's ability to meet the six-month execution deadline. Given the strict liquidated damages clause, the company's project management and supply chain efficiency will be critical to maintaining margins on this government order.