Power Mech Arabia Contracting Company, a subsidiary of Power Mech Projects Limited, has secured a significant contract valued at approximately ₹492 Crores (USD 52.11 Million). The contract involves the installation of heat recovery steam generators, a steam turbine, and balance of plant combined cycle piping for the Rabigh 2 IPP Expansion Project in Saudi Arabia. This international project is set to be executed over a period of 20 months, commencing from January 1, 2027.
Power Mech Arabia Secures Major International Contract
Power Mech Projects Limited announced that its subsidiary, Power Mech Arabia Contracting Company, has entered into a substantial contract within the Kingdom of Saudi Arabia. The agreement is with a joint venture comprising The Branch of ELSEWEDY ELECTRIC POWER SYSTEMS PROJECTS and The Branch of SINOHYDRO CORPORATION LIMITED. This strategic win underscores the company’s growing presence in the international power sector.
Contract Details and Scope of Work
The contract, detailed as per SEBI Master Circular No. SEBI/HO/CFD/P0D2/CIR/P/0155 dated November 11, 2024, encompasses a significant scope of work. The primary focus includes the installation of three Heat Recovery Steam Generators (HRSGs), one Steam Turbine for Block 10, and the balance of plant combined cycle piping for Block 20 and common facilities. Additionally, an optional scope involves the installation of balance of plant combined cycle piping for Block 10.
The contract is classified as an international engagement, awarded by an international entity. The nature of the contract involves Erection work, and it is expected to be executed over a period of 20 months, effective from January 1, 2027.
Financial Valuation
The total consideration for this contract is substantial. The main work is valued at approximately USD 40,982,353, equivalent to roughly INR 386.87 Crores (excluding taxes). The optional work adds another USD 11,136,756, approximately INR 105.13 Crores (excluding taxes). Aggregating both, the total value amounts to approximately USD 52,119,109, which converts to roughly INR 492 Crores (excluding taxes), based on the conversion rate of 1 USD = INR 94.4 as of November 5, 2026.
Related Party Transaction Assessment
In accordance with disclosure requirements, the company confirmed that neither the promoter nor any promoter group companies have any interest in the entity that awarded the contract. Furthermore, the contract has been assessed and determined not to fall within related party transactions.
Source: BSE
