Shares of Power Mech Projects Limited are in focus today after the company announced a major renewable energy order win through its wholly owned subsidiary, PM Green Private Limited. The subsidiary, acting as the lead member, has secured a 1 GWh Battery Energy Storage System (BESS) project from West Bengal State Electricity Distribution Company Limited, marking a significant milestone in Power Mech Projects’ clean energy expansion strategy.
As part of its long-term renewable energy roadmap, PM Green participated in the tender floated by the Department of Power, Government of West Bengal. The company has been awarded the contract for setting up a 250 MW / 1,000 MWh Battery Energy Storage System at the Goaltore Substation in Paschim Midnapore. The project will be executed under a Build, Own, Operate (BOO) model and comes with a 100% off-take guarantee from WBSEDCL, ensuring stable and predictable revenue visibility over the contract period.
The scope of the project is comprehensive and includes design, financing, engineering, procurement, construction, operation, and maintenance of the BESS facility. The construction period is scheduled to be completed within 18 months from the signing of the Battery Energy Storage Purchase Agreement (BESPA), highlighting the company’s execution capabilities in large-scale infrastructure projects.
In addition to the base project, the contract also includes a greenshoe option for an additional 250 MW / 1,000 MWh capacity to be developed at the Durgapur Project Limited campus in Durgapur. If exercised, this option would further strengthen Power Mech Projects’ presence in grid-scale energy storage and enhance its role in supporting renewable energy integration in eastern India.
The total revenue potential from the project, including the greenshoe capacity, stands at ₹3,126 crores. The contract tenure is 15 years from the scheduled commissioning date, with a provision for extension of up to 5 additional years, offering long-term annuity-style income and improving the company’s earnings visibility.