Whalesbook
Pace Digitek Ltd announced on Monday, November 17, that it has secured a major order worth ₹929.76 crore from Maharashtra State Power Generation Company Limited (MSPGCL). The contract involves the design, engineering, manufacturing, supply, installation, and commissioning of a 200 MWAC grid-connected solar PV power plant, including three years of operation and maintenance. The project is to be completed within 450 days. This significant order is expected to boost the company's revenue and project pipeline.
Pace Digitek Ltd has announced a substantial new contract valued at ₹929.76 crore, inclusive of taxes, from the Maharashtra State Power Generation Company Limited (MSPGCL).
This significant order pertains to the development of a 200 MWAC grid-connected ground-mounted solar photovoltaic (PV) power plant, part of a larger 300 MWAC project. The scope of work is comprehensive, covering the entire lifecycle from design and engineering to manufacturing, supply, erection, installation, testing, commissioning, and importantly, three years of operation and maintenance. It also includes the necessary power evacuation arrangements to the STU substation.
The project is slated for execution within 450 days from the date the company accepts the Letter of Award. Pace Digitek clarified that this order, awarded by a domestic entity, does not involve any promoters or promoter groups with interests in MSPGCL, confirming it is not a related party transaction.
Pace Digitek, established in 2007, is a diversified solutions provider primarily focused on the telecom passive infrastructure sector.
Impact
This order represents a significant addition to Pace Digitek's project pipeline and is expected to substantially contribute to its revenue over the next few years. It validates the company's capabilities in the renewable energy sector and could lead to further business opportunities. The long-term operation and maintenance component also provides a stable revenue stream. The market may react positively to this large order, potentially boosting investor confidence in the company's growth prospects.
Rating: 7/10
Difficult Terms:
Solar PV Power Plant: A facility that generates electricity using photovoltaic (PV) cells, which convert sunlight directly into electricity.
Grid-Connected: Refers to a power system where the solar power plant is connected to the public electricity grid, allowing it to supply power to consumers and potentially feed excess power back to the grid.
Ground-Mounted: Means the solar panels are installed on the ground, rather than on rooftops.
Power Evacuation Arrangement: The infrastructure and systems required to transfer the electricity generated by the solar plant safely and efficiently to the national or regional electricity grid.
STU Substation: Stands for State Transmission Utility Substation. This is a crucial point in the electricity grid where power is transmitted from generators to the distribution network.
Operation and Maintenance (O&M): Ongoing services required to keep the power plant running efficiently and reliably, including monitoring, repairs, and upkeep.
Letter of Award (LOA): A formal document issued by a client (MSPGCL) to a contractor (Pace Digitek) signifying their intention to award a contract for a project.
Related Party Transactions: Business deals between parties that have a close relationship, such as parent companies and subsidiaries, or entities where key management personnel have interests. These transactions often require special scrutiny to ensure fairness.
